Please help in accounting treatment for sponsership amount received from vendor for renovation of the restaurant, Vendor has deposited the GST under reverse charge and also deducted TDS @ 2%, but what should be the treatment in accounts for sponsership amount received, whether it should be trated as revenue and capitalise the renovation expense or we have to net off the sponshership amount with the renovation amount which is more than the sponsership amount received so excess amount only will be capitalised????
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Sponsorship accounting
Replies (1)
payment is received for construction after deducting tds
so important is that what other party show this tranction
since u are not going to refund it
show in your books as loans and advances received form
party if u dont claim tds
if u want to claim tds show as income received
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