TDS entries

journal entries passed,

Rs 50000 Brokerage & commission

TDS.U\S 194 H,10%,Rs 5000.

j/n passed.....

Brokerage& Commission A/C---------------------------------------------------------Dr 50000

                                     To TDS ON B&C (Corpotate/non)---------5000

                                      To Party A/C-----------------------------------45000

NOTE ...PARTY A/C CREDITED FOR RS 45000.

thanks for  all suggestions,

 50 , 50 opinions are there, so both entries are acceptable, but in my opinion incase of direct cash or cheque payment second option is not applicable.

Its better to pass the entries mentioned in 2nd option. By doing so, gross amount paid/payable will be shown in the party's a/c and what amt. of tds is deducted thereon(i.e. from party's a/c, as tds is to be deducted from party and not from commission a/c) will be clearly presented.

THE CORECT ENTRY IS

COMMISSION A/C DR                                     50000

                TO TDS PAYABLE                         5000

                 TO PARTY A/C                                   5000

Mr Prashant,party a/c credited by 45000.....not 5000.

Dears

The following entry to be passed when the transaction about  TDS ON COMMISSION FOR RS 5000. here if transaction gives party names from whom TDS IS BEING deducted so ,

                                       PARTY a/c Dr     5000

                                                  To TDS on commission payable  5000

                (Being tds on commission deducted to party when payment done).

Thanks for giving an oppertunity to do the needful as best of my knowledge.

i agree with bhumesh......entry......

Conceptually Both the options are correct, but the 2nd one is preferable, where in you can easily findout on whom you have deducted the TDS

sir,

I will go with mr.praveen singh(A/C Manager)

Commission A/c Dr   50000.

       To party A/c                                45000

        To T.d.s payable a/c                 5000

HI,

Both entries are Correct. It is better to go by the second one .

sir,

suppose if we are raising debitnote for service    charges --100

we are deducting service tax---50

total is 50

then if we are receiving payment  50

we r deducting tds on that --suppose 10

what r the entries this process

By Commission A/c Dr. 50000.00

To TDS Payable A/c          5000.00

To Party A/c                       45000.00

1) Journal Entry-

Commission A/c             Dr.       50000

         To Creditors A/c                                                   45000

         To Tds Payable On Commissin A/c                  5000

2)  Payment Entry-

  Creditors   A/c       Dr.             45000

  Tds Payable on Commission A/c  5000

                           To Bnak         A/c                                 50000