can anyone tell me what is the accounting treatment for TDS in detail in both the parties books i.e Deductor and deductee
n what is the treatment after claiming Refund in case of nil Return and before claiming Refund
Please let me know About it i always get confused
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
CAclubindia
