Tds
This query is : Resolved
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)
(Expert)
10 January 2015
ya it would be as tds receivable
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?
12 January 2015
A small correction - its not trade payables..its trade receivables
Plz give an answer Sir.
Plz give an answer Sir.
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!
---
### ✅ **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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