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Tds and accounting entry

1434 views 3 replies

 

Respected sir,

 

I have received bill from party. bill detiail as bellow.

bill amt (1074 trip*125) 156450/-

less diesel                        241350/-

net amt                               215400/-

this bill for dumper fera in our side.

Fera = trip

first we purchade diesel from abc petroliun in debit & then we privided diesel to this party. we.

diesel bill received  our name.

how many % tds diduct on this bill and which amt considered for tds. (this bill is considred with plant machinary rent or contract).

and also show me this transtion entry for accounting purpose.

thanking you


 

 

Replies (3)

Please clarify whether this payment is towards hire charges for machinery or hire charges for travel. if it is hire charges of machinery TDS u/s-194I -2%,  if it is for hire charges for  car it will come under section 194C  .

He can submit the bill for hire charges excluding diesel and TDS should deducted that amount

TDS @ 2 % on net amount.

Accounting entry is simple as in regular bills. 

Credit this dumper party with the net amount and debit the same with the tds amount

 

Please note if contractor is an individual TDS should be 1% under section 194C


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