Income tax

Dear Sir,

In my opinion, no question arises on write off the party balance due to non receipt of TDS Certifiacte. for example - if we dr, party by Rs.  10000/- and in turn he makes payment of Rs. 9000/- and deduct TDS of Rs. 1000/- then in our books the entry should be -

Bank/Cash A/c   Dr.                         9000/-

TDS Receivable A/c Dr.                  1000/-

            To Party A/c                                         10000/-

Now the party's balance is NIL and TDS receivable A/c is the standing a/c which can be claimed as expense if certificate is not recd.

Regards,

K N Jain

Originally posted by :VATSAL SHAH