TDS

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Sushant Singh (Querist)
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26 August 2009 Sir,
What are the journal entries of TDS Payable & when TDS is Recevied ?

Please explain me with example of amounts.

Thanks in advance !

Ram Avtar Singh

Ram Avtar Singh (Expert)
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27 August 2009 after receiving TDS cetificate

TDS paid (A.Y.2009-2010) Dr
Party Account Cr

CA Binal Shah

CA Binal Shah (Expert)
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27 August 2009 Hi,

Suppose u hv to deduct tax on transportation charges of Rs.20,000/- @ 2.266%

Entries:
1) Transportation charges dr. 20,000
To Party a/c(20,000-2.266%) 19547
To TDs Payable 453
(20,000*2.266%)
2) Party a/c dr. 19,547
TDS Payable dr. 453
To Bank a/c 20,000

Now suppose u r providing transporation service. U earn 20,000 as transportation charges on which 2.266% tax is deducted by the party.

Entries:

1) Party a/c dr. 19,547
TDS Receivable dr. 453
To Transportation charges 20,000

2) Bank a/c dr. 19,547
To Party a/c 19,547

*** TDS receivable a/c is shown under the head "loans & advances" at asset side in b/s.

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