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?
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?
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.
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### ✅ **Correct Accounting Treatment**:
When your company raises an invoice for ₹10,000 and the customer deducts ₹200 as TDS and pays you ₹9,800:
```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 ```
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### 📌 **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.
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### 🔁 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!
CAclubindia
