If the Bill amount is 55150 & TDS is 1103/-, When this amount is for a period of 3 months, I need to calculate prepaid expenses for 1 month.
On which amount i should calculate? Either 55150 or 54047/-
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Prepaid Expenses
Replies (12)
kindly describe wat's the nature of payment of that bill...?
You should calculate on Rs.55150.00
prepaid expences is calculated on the total expences amount debited in p/l a/c.we always debit the total expences before tds
so prepaid exps calculated on Rs.55150/- that is for one month Rs 18383( 55150/3*1)
hi, as regards me need to calculate inclusive gross turner over of the bill ie 55150 becz prepaid expenses inclusive of the gross turnover of the bill.hence better calculate on 55150.
TDS would be deducted from party's account not from Income / Expenses Account.
You should be calculating Prepaid Expenses on Bill amount not the amount after deduction of tax.
In case there is any indirect tax credit is claimed such as VAT, Service tax, Excise, (in this case there may be service tax) as this is case of TDS you should consider the amount after dedcution of tax credit claimed
In illustrated case if amount of bill after deduction of indirect tax credit Rs. 55,150/- Your expenses would be Rs. 36,767/- (2/3 of total) & Prepaid Expenses would be Rs. 18,383/- (1/3 of total)
agree with Nandish
| Originally posted by : Nandish | ||
 |
TDS would be deducted from party's account not from Income / Expenses Account. You should be calculating Prepaid Expenses on Bill amount not the amount after deduction of tax. In case there is any indirect tax credit is claimed such as VAT, Service tax, Excise, (in this case there may be service tax) as this is case of TDS you should consider the amount after dedcution of tax credit claimed In illustrated case if amount of bill after deduction of indirect tax credit55,150/- Your expenses would be36,767/- (2/3 of total) & Prepaid Expenses would be18,383/- (1/3 of total) |
agree |
agree with nandish
Thank you all for your valuable reply.....
TDS is to be calculated on bill amount i.e Rs 55150
It should be calculated on gross liablity or gross amount payable...
i.e. Rs.55150.00
@ Karthika - Are u in CA Finals or CPT.....
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