TDS in case of freight amount

This query is : Resolved

Sunil Saini (Querist)
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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/-

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
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29 July 2008 Rs 105000.

CA. Dhirendra Singh

CA. Dhirendra Singh (Expert)
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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

CA Hemant T Dewani

CA Hemant T Dewani (Expert)
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29 July 2008 tds is to be deducted on those amount which are debited to p&l a/c so tds is to be deducted on rs.85000/-

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