Dear Experts,
We are paying house rent Rs.50,000/- (Net payment) per month excluding TDS to a resident indian by way of cheque since Oct, 2011. Now, we need to make entries in books of accounts for FY 2011-12 for these payments.
Can you please let me know, the reverse entry to calculate TDS amount and gross rent amount ?
Thank you,
Gross Rent amt would be 55555.55, TDS would be 5555 & net payment would be 50000.
Agree with Girdhar Ji..
Accounting entry to be passed would be
Rent A/c Dr. 55,555
To Bank A/c 50000
To TDS Payable A/c 5555
Thank you Giridhar & Mahesh.
My query is.....
Clent has received bill of Rs 1,00,000 for advertisment and paid Rs. 1,00,000 and deduct TDS @ 1% 1000/-....As by reverse calculation i suggest to Deduct TDS 1010/- as payment of RS 1,00,000 is 99%
But due to this entry they made
Advertisment dr 1,01,010
To Bank 1,00,000
To TDS Payable 1.010
As bill recived is only Rs 1,00,000 than whther 1,01,010 is allowable ???????
Suggest
Plese defined me method of reverse calculation of TDS
I want to no how calculate Reverse TDS
CAclubindia
