Tds

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Sabareesh (Querist)
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10 January 2015 Dear experts, our company raised invoice for 10000 & the customer has paid us 9800 after deducting TDS. Our company has a procedure to show that 200 as a receivable amount till it appears in our 26 AS. Is it correct?

CA AnKiT BoHrA (AB)

CA AnKiT BoHrA (AB) (Expert)
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10 January 2015 ya it would be as tds receivable

Sabareesh

Sabareesh (Querist)
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12 January 2015 I'll be more clear now. My question is- our company is showing that amount as collectable from debtors I.e trade payables till it reflects in 26AS. Am I clear Sir? Did u get my question?

Sabareesh

Sabareesh (Querist)
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12 January 2015 A small correction - its not trade payables..its trade receivables
Plz give an answer Sir.

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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27 July 2025 Yes, now your question is absolutely clear — and you're **on the right track**, with just a **small accounting classification clarification** needed.

---

### ✅ **Correct Accounting Treatment**:

When your company raises an invoice for ₹10,000 and the customer deducts ₹200 as TDS and pays you ₹9,800:

| Particulars | Amount (₹) |
| ---------------- | ---------- |
| Invoice Raised | 10,000 |
| Payment Received | 9,800 |
| TDS Deducted | 200 |

---

### 📘 **How to show it in the books?**

You should record:

#### **At the time of raising invoice:**

```plaintext
Debtor (Customer A/c) Dr. 10,000
To Sales/Revenue A/c 10,000
```

#### **When payment is received with TDS:**

```plaintext
Bank A/c Dr. 9,800
TDS Receivable A/c Dr. 200
To Debtor (Customer A/c) 10,000
```

---

### 📌 **Key Point:**

* **TDS receivable** is an **asset**, not a part of "trade receivables" from the customer.
* Once the **Form 26AS** reflects the ₹200, your company can match and claim the TDS credit in the income tax return.
* Till then, it's **absolutely correct** to show that ₹200 in **TDS receivable (asset)** — **but not in customer’s account or trade receivables** anymore.

---

### 🔁 Summary:

* ✅ Yes, it is correct to show the ₹200 as **TDS Receivable**.
* ❌ It is **not correct** to keep it under **Debtors/Trade Receivables** once the full ₹10,000 is accounted for (₹9,800 received + ₹200 TDS).
* ✅ Once matched in 26AS, it can be claimed while filing the return.

Let me know if you’d like a sample journal entry or Excel format for tracking TDS receivable!

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