Tds applicable and accounting entries

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Kollipara Sundaraiah (Querist)
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29 March 2020 Assess maintained a hospital .assess amount paid below persons.
1.commission paid to another doctors
2.commission paid to RMP persons.

Question:
1. Assess Commission paid amount on tds applicable or no.
2.how to pass on accounting entries.

Eswar Reddy S

Eswar Reddy S (Expert)
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29 March 2020 Tds is applicable subject to limits 15000 limit under 194H @ 5% You may account the Tds in payment entry If commission is 1lac then 1) Commission a/c Dr To Doctor/RMP 2) Doctor a/c Dr 100000 To Bank 95000 To Tds on Commission. 5000 3)Tds on Commission a/,c Dr 5000 To Bank 5000 Alternatively you can account the Tds in first entry..

CA ANILKUMAR B.COM FCA DISA

CA ANILKUMAR B.COM FCA DISA (Expert)
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31 March 2020 As per the relevant provisions, tax to be deducted if the amount paid or credited or aggregate amount paid or credited in a year likely to be paid or credited exceeds Rs. 15000/-. Considering the question, in a view that assessee is liable to deduct tax subject to other conditions , following entries are to be made.
Amount for illustration purpose 1 Lakh. TDS rate 5%
payable entry
1. Commission paid (dr) 100000
Doctor name/RMP name 95000
TDS payable 5000
2. At the time of payment
Doctor name/RMP name 95000
Bank 95000
3. TDS payament
TDS payable 5000
Bank 5000

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