Tds
This query is : Resolved
NARESH KUMAR SHARMA
(Querist)
05 April 2013
Sir,
Q. A sales goods to B for. Rs. 100000/- on 60 days payment terms
B pays to A after 30 days amount 98000/- and deducts Rs. 2000/- showing as early payment interest in his debit note.
what will be accounting entries in books of A for deduction of Rs. 2000/-, is it to be treated as discount & rebate or interest paid.
Is A liable for deduction of TDS on this amount (as B has given debit note for interest on early payment),
Thanks
naresh.
Q. A sales goods to B for. Rs. 100000/- on 60 days payment terms
B pays to A after 30 days amount 98000/- and deducts Rs. 2000/- showing as early payment interest in his debit note.
what will be accounting entries in books of A for deduction of Rs. 2000/-, is it to be treated as discount & rebate or interest paid.
Is A liable for deduction of TDS on this amount (as B has given debit note for interest on early payment),
Thanks
naresh.
CMA Ramesh Krishnan
(Expert)
26 July 2013
It is nature of cash discount. my view TDS is not apply
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