Bank overdraft entry

XYZ bank raise the bill to ABC co. against overdraft facility. how to pass entry and we can deduct TDS.

as per my knowledge no need to deduct TDS but kindly suggest
Replies (4)
Quick Summary
This discussion clarifies how to record journal entries for bank overdraft facilities, specifically when XYZ Bank bills ABC Co. It addresses whether Tax Deducted at Source (TDS) needs to be applied to processing or bank charges associated with the overdraft. The consensus suggests TDS is generally not applicable on bank charges for overdrafts, though it might apply if the facility is provided by an NBFC.

No need to deduct tds

payment entry

Dr Processing Charges / Bank Charges
Cr XYZ Bank
If it is bank then no need to deduct tds but if it is nbfc then tds to be deducted on processing fees u/s 194A
Tds is not àpplicable as per Sec 194 C
XYZ bank raise the bill to ABC co. against overdraft facility. how to pass journal entry.

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