TDS
This query is : Resolved
26 August 2010
Expert,
Link
https://www.caclubindia.com/forum/how-to-book-tds-as-an-input-101169.asp
has the TDS entry as below:
Debtors a/c dr
TDS A/C DR
TO INCOME/SALES/SERVICES A/C
TDS is to be deducted either on credit or on payment whichever is earlier....but the about entry is neither a credit or a payment.
Is the above entry correct? on what basis??
thnx
kirti
Link
https://www.caclubindia.com/forum/how-to-book-tds-as-an-input-101169.asp
has the TDS entry as below:
Debtors a/c dr
TDS A/C DR
TO INCOME/SALES/SERVICES A/C
TDS is to be deducted either on credit or on payment whichever is earlier....but the about entry is neither a credit or a payment.
Is the above entry correct? on what basis??
thnx
kirti
CA Kalpesh Gokani
(Expert)
26 August 2010
This is entry for TDS which is deducted by customer or debtor for providing service etc....not for TDS deducted by firm for its vendors...so TDS is debited
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Aditya Maheshwari
(Expert)
26 August 2010
In the above case TDS has been deducted by other party and not by us. We are receiving money so it is debit and not credit.
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CA Sanat Pyne
(Expert)
26 August 2010
actually this is TDS RECEIVABLE.
from that point of view the entry is correct.
from that point of view the entry is correct.
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26 August 2010
AGREED WITH EXPERTS.
IN IF YOU DEDUCTED TDS OF ANY PARTY THEN
IF PAYMENT MADE IN ADVANCE THEN
BANK DR
TO PARTY
TO TDS PAYABLE
IF BILL CREDIT FIRST THEN
EXPENSES DR
TO PARTY
TO TDS PAYABLE
PARTY DR
TO BANK.
IN IF YOU DEDUCTED TDS OF ANY PARTY THEN
IF PAYMENT MADE IN ADVANCE THEN
BANK DR
TO PARTY
TO TDS PAYABLE
IF BILL CREDIT FIRST THEN
EXPENSES DR
TO PARTY
TO TDS PAYABLE
PARTY DR
TO BANK.
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26 August 2010
If TDS represents TDS receivable then instead of Debtors it should be bank in the entry:
Bank Dr
TDS Receivable Dr
To Party.
Pls give an example with amounts.
Bank Dr
TDS Receivable Dr
To Party.
Pls give an example with amounts.
26 August 2010
Bijender ji said entry for advance payment is:
BANK DR
TO PARTY
TO TDS PAYABLE
Acc to me the entry for advance payment is:
Party Dr
To Bank
To TDS Payable
Pls reply for my last 2 queries.
BANK DR
TO PARTY
TO TDS PAYABLE
Acc to me the entry for advance payment is:
Party Dr
To Bank
To TDS Payable
Pls reply for my last 2 queries.
Aditya Maheshwari
(Expert)
26 August 2010
There is a confusion out here.
There are two seperate sets of entries. One for TDS payable and one for TDS receivable.
In case of TDS payable the entries mentioned by you are correct and in case of TDS receivable entries by Bansalji is correct. However he made a typographical mistake of writing TDS payable rather that writing TDS receivable.
That is the only mistake of wrodings nothing wrong in entry.
There are two seperate sets of entries. One for TDS payable and one for TDS receivable.
In case of TDS payable the entries mentioned by you are correct and in case of TDS receivable entries by Bansalji is correct. However he made a typographical mistake of writing TDS payable rather that writing TDS receivable.
That is the only mistake of wrodings nothing wrong in entry.
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26 August 2010
Correct and now confusion should be over.
26 August 2010
Coming back to the original query - Pls refer to the first msg in the thread.
Entry is:
Debtors a/c dr
TDS A/C DR
TO INCOME/SALES/SERVICES A/C
What does this entry mean?
A reply said - TDS is deducted by other party & bal is paid.
Then acc to me the entry shld be:
Bank Dr
TDS Receivable Dr
To Party.
Pls correct me if I am wrong.
(I dont want to prove any entry as wrong - want to clear my concepts)
thanks
kirti
Entry is:
Debtors a/c dr
TDS A/C DR
TO INCOME/SALES/SERVICES A/C
What does this entry mean?
A reply said - TDS is deducted by other party & bal is paid.
Then acc to me the entry shld be:
Bank Dr
TDS Receivable Dr
To Party.
Pls correct me if I am wrong.
(I dont want to prove any entry as wrong - want to clear my concepts)
thanks
kirti
CMA Ramesh Krishnan
(Expert)
26 August 2010
First entry you are booking TDS receivable while accounting the sale
If you are not accouting TDS in sales entry, you can book the TDS while payment receipt, that time the entry will be your 2nd entry
If you are not accouting TDS in sales entry, you can book the TDS while payment receipt, that time the entry will be your 2nd entry
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Aditya Maheshwari
(Expert)
26 August 2010
Boh ur entries are right.
If accounting on mercantile basis 1st entry is correct
If accounting on case basis 2nd entry is right.
If accounting on mercantile basis 1st entry is correct
If accounting on case basis 2nd entry is right.
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