29 July 2008
Suppose the total freight amount is Rs 105000/- and we have to deduct Rs 20000/- for damages of goods. Now my question is on which amount TDS to be deducted either on Rs 105000/- or Rs (105000-20000)=85000/-
29 July 2008
TDS will be deducted on amount paid or amount credited in his account which ever is earlier . My friends here amount paid or credited his account is Rs. 85000 So TDS will be deducted on Rs. 85000. Entry is : Freight A/c Dr. 105000
Party A/c Dr. 1926 ( 2.266 % of 85000 ) To Party A/c 85000 To Shortage 20000 To TDS payable 1926
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