TDS on payment made on our behalf

This query is : Resolved

Mukesh Agarwal (Querist)
Follow

13 September 2008 If a person made payment on our behalf to contractor & deduct tds. Is there any liability on us towards deduction of tds on payment made to person who has payment made on our behalf.

Taxguy

Taxguy (Expert)
Follow

13 September 2008 No, but for proper accounting entries in the books of acount.

Mukesh Agarwal

Mukesh Agarwal (Querist)
Follow

13 September 2008 What accounting entry we will pass.

CA Nitin Wadhwani

CA Nitin Wadhwani (Expert)
Follow

15 September 2008 Take An Example

Suppose B Makes Payment of Profeesional Fees of 9000 after Deducting 1000 as TDS.
on behalf of A To C.

In The Books of C

1)Bank A/c.......................Dr 9000/-
TDS On Profession A/c..........Dr 1000/-
To Professional Fees A/c 10000/- or
To A's A/c 10000/-

In the Books of B

2)A's A/c................Dr 9000/-
To Bank A/c 9000/-

In The Books Of A

3)Professional Fees/C's A/c....Dr 10000/-
To B's A/c 9000/-
To TDS On Professional 1000/-