TDS

hi NIKHILA

jus with an illustration

a company have to pay rent of Rs.11000/- per month and on that TDS amount is Rs.1100/- then

IN THE BOOKS OF COMPANY

                             RENT A/C Dr                 11000 ( Expenditure in P&L)

                                     To Rent Payable / Cash   a/c              9900    (Provision / payment)

                                    To TDS payable a/c                               1100     (Current Liabilities)

IN THE BOOKS OF THE RECEIVER

                            Company/ Cash A/c Dr              9900 (Sundry debtor / receipt)

                            TDS receivable a/c Dr    1100(Current asset)

                                  To Rent received A/c            110000.( Income )

when the rent receiver files a nill return claiming refund then the amount standing to the debit of the TDS recieveble is transfered to

Income Tax Refund a/c ( under current assets ).

thank u sai krishna ji