Mega Offer Avail 65% Off in CA IPCC and 50% Off in all CA CS CMA subjects.Coupon- IPCEXAM65 & EXAM50. Call: 088803-20003

CA Final Online Classes
CA Classes

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

Grossing Up of TDS on Non-resident Payments


Raj C Doshi (Practising CA)     15 April 2021

Raj C Doshi
Practising CA 
 308 likes  4438 points

| My Other Post
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 )
Sourav

Sourav (Student)     15 April 2021

Sourav
Student 
 717 likes  12074 points

View Profile | My Other Post
Yes in profit and loss a/c Royalty expenses should be shown as 89.6 rupees and TDS amount should be provisioned or tax expenses
Puneet Matha

Puneet Matha   15 April 2021

Puneet Matha

 2 likes  30 points

View Profile | My Other Post
Royalty expense will be debited with Rs. 100 and TDS will be credited with Rs. 10.4
1 Like
Susmita Dutta, CA , CPA

Susmita Dutta, CA , CPA (CA )     15 April 2021

Susmita Dutta, CA , CPA
CA  
 94 likes  1611 points

View Profile | My Other Post
Originally posted by : Puneet Matha
Royalty expense will be debited with Rs. 100 and TDS will be credited with Rs. 10.4

This is the correct way to show the royalty expenses.

1 Like

Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register  



Related Threads


Loading


Trending Tags