Say royalty is to be paid Rs. 89.6.
TDS grossed up 10.4 Rs.
Total outflow 100 Rs.
So profit and loss a/c will have royalty expense head of Rs. 100 ???
OR
Royalty expense head of Rs. 89.6
and taxes paid expense of Rs. 10.4???( Also will 10.4 be disallowed in tax computation as it is income tax paid )
CAclubindia
