Tds cheque

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This query is : Resolved

ashok thakker (Querist)

11 June 2013 Sir,
We receive payments of warehousing of TEA from principal Auction brokers,in turn they deduct service charges from our bills, for processing our payment on behalf of Garden owners.As we are supposed to deduct TDS on this deductions,we pay TDS in march'2013 for the entire Year and amount of service charges so deducted,and deposit in bank.On receiving challans we ask them for reimbursement of deposited amount which they pay subsequently.
This year one of the brokers insists on issuing cheque in my personal name instead of Company's name,as mine is a proprietorship concern.
Can i accept this cheque ? and if yes how do i adjust in my company account ?
Please advise how to move about in this case.
regards,
ashok thakker

CA.Sourabh Sethia

CA.Sourabh Sethia (Expert)

12 June 2013 Yes if yours is a proprietory Concern then you can accept the amount in personal Name

the same can be adjusted but there are two case

1. if your personal A/c is in Your Business books then the same can be adjusted as

Personal A/c.........Dr
To party/Broker A/c

2. if your personal A/c is not in your Business Books then adjusted as follows

for payment received no entry in business books

but a JV will be passed as follows

Proprietor A/c........Dr
To Party/Broker A/c

ashok thakker

ashok thakker (Querist)

12 June 2013 Thanks a lot Mr Sethia...
regards,
ashok thakker

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