Tds on grooving charges

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Querist : Anonymous

Querist : Anonymous (Querist)

22 September 2014

Where should TDS on Grooving Charges go in the Financial Statement(in trading or in P and L Account)

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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22 September 2014 TDS is the balance sheet item. so it will be appear in the current liabilities not in p&l or trading a/c

Querist : Anonymous

Querist : Anonymous (Querist)

23 September 2014 Ok Thanks

And Grooving charges must go to the Trading Account.....right

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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27 July 2025 Exactly!

* **TDS deducted** is a **balance sheet item** (usually shown under Current Assets as TDS Receivable or Advances) until claimed/refunded.
* **Grooving charges** — since they relate to processing or modification of goods — would typically be recorded in the **Trading Account** (as part of direct expenses related to purchase or manufacturing).

So:

* Grooving charges → **Trading Account** (expense related to goods)
* TDS deducted on grooving charges → **Balance Sheet (Current Assets)**

Makes sense?

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