how to enter the TDS Deduction and TDS Paid

Hi Mr. Reddy,

I think there should not be a tax deduction on purchase and sale of goods. Please clarify regarding the nature of the transaction.

Regards,

Amit

I too agree with Amit Sir.

I assume them as Professional Charges received & Professional charges Paid as both r deducted @ 10%.

Entry For Professional Charge Received

When Invoice is raised

Party A/c Dr                                         1,45,000

    To Professional Income A/c                          1,45,000

When Receipt of Amount

Bank/Cash A/C Dr                              1,30,500

TDS (Asset) A/C Dr                               14,500

      To Party A/c                                                        1,45,000

Entry For Professional Charge Paid

On receipt of Bill

Professional Charges A/c Dr                 1,25,000

        To Party A/C                                                           1,12,500

         To TDS (Liability)                                                     12,500

On payment made

Party A/c Dr                                                  1,12,500

        To Bank/Cash A/c                                                   1,12,500

I hope this would helped u

R Shriram.