Journal entry in books

Capitalized the same by making following

Fixed assets-Plant & Machinery

To cash/Bank/vendor

one more thing. there is need to deduct tds on job work.. will job work be included in asset?? or should show seperately under differnt head???
 

Hi

please consider following:

1) As per sec 194C TDS is deducted from Job work . Details are as-

A. Material is  supplied by the Purchaser-
 In this case if the Invoice shows break up of material cost and labour cost than in such case TDS will be deducted only on Labour cost.No TDS will be deducted on Material cost.But if Invoice does not have a break up of Material cost and Labour cost then TDS will be deducted on full Invoice value.

B. Material is Not supplied by the Purchaser-
This is a sale Transaction transaction as per sale of Goods Act. Thus no TDS is applicable.

2) And job work shall be capitalized through Fixed assets-refer to AS-10