Hi ,
Can anyone help me with the accounting entries for the foillowing scenario (TDS on lottery payment in kind):
Prize in Kind Worth Rs. 10,00,000/-
TDS Rate at the time of payment : 30% , ECess: 2%, SHEC: 1%. -> 30.9%
Gross Amount on which TDS to be deducted to effect net payment of Rs.10,00,000/- : 10,00,000 * (100 / 100-30.90) = Rs. 14,47,178/-
Effective TDS to be deposited with Govt. before Prize release : Rs.4,47,178/-
Gross income for the winner : Rs.14,47,178/-.
Need accounting entries at:
time of buying the gift as mktg expense
at the time of tds calc and payment to govt
at the time of payment to winner
CAclubindia
