Consultancy Charges by Ex Employees

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A company is seeking advice on how to account for monthly payments made to two retired ex-employees who provide business support. The payments, totalling £30,000 per month, are made without invoices. The recommended approach is to record these under 'Professional Charges' as a ledger expense. It's also crucial to account for TDS (Tax Deducted at Source) at a rate of 10% on these payments.

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(Querist)
21 July 2020 Hi,

My company has 2 ex employees who is supporting the company for business after retirement. I need to pay them around 30000 per month for which they will not provide any bill. Kindly suggest me that in which expenses head i have to account the same.
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CA KARAN SINGH

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CA KARAN SINGH (Expert)
26 July 2020 Show it under the Ledger heading of Professional Charges.
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Yogeshwaran.D

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Yogeshwaran.D (Querist)
30 July 2020 Sir, Thanks for your reply. Can I account without TDS Sir.
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CA KARAN SINGH

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CA KARAN SINGH (Expert)
30 July 2020 No, TDS has to be accounted @ 10%
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