Defuction u/s 194c

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673 Points Posted on 24 March 2021
TDS U/S 194 C .
under which head the amount will be shown.
actually my client made sales to bsnl . they have deducted tax @ . 1%. on the amount of purchase since the value is more than rs.30000
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On 24 March 2021 at 11:44 Report
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This discussion clarifies how to account for Tax Deducted at Source (TDS) under Section 194C when a client makes sales to BSNL. The TDS deducted by BSNL at 1% on purchases exceeding ₹30,000 should be treated as contractual receipts. This deduction reduces the receivables from BSNL, and the TDS amount itself is reported under current assets in the books of account.

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Student
210 Points Posted on 24 March 2021
Show the deduction as TDS deducted in BSNL account in books of account
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On 24 March 2021 at 12:05
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Chartered Accountant
24588 Points Posted on 24 March 2021
194C is contractor receipts. You will show the transaction under Contractual Receipts
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On 24 March 2021 at 12:06
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Chartered Accountant
5010 Points Posted on 24 March 2021

This will be considered as Direct income/Revenue from Operation/Sales in the books of accounts of the seller. 

Receivables from BSNL will reduce by the amount of TDS deduction.

TDS will be reported under the head current assets. 

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On 24 March 2021 at 12:56

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