TDS on Brokerage / Commission

2368 views 4 replies

Can we pass the following entries wihout deducting the TDS in books

Brokerage  A/c   Dr

        To Brokerage Payable

And TDS will deduct in the month of Marach partywise.

 

Thanks

Replies (4)

As far as my concern, 

The answer is no because TDS is deducted at the time of credit to 'Payable Account' or the date of payment whichever is earlier:)

TDS is to be deducted at the time of maikng payment or credit to the account of the sum to the vendor or passing the entry to a suspense account. In the case of Brokerage Payable, this is a suspense account.  So there is no case of non deduction of TDS.

Not much help is available for not deducting TDS,

The answer would be know.. TDS should be deducted on making payment or passing entries in the books of accounts whichever is earlier
 

Originally posted by : Deepak Tapse

Can we pass the following entries wihout deducting the TDS in books

Brokerage  A/c   Dr

        To Brokerage Payable

And TDS will deduct in the month of Marach partywise.

 

Thanks


you can defer the tds till march with simple trick, if TDS amounts are little and not of regular nature,

 

make advance payment to the receipent in rounded off to 100 and finalize the account in march with taking advance in consideration and making TDS payment. coz unless u account the amount to commission or brokerage, TDS payment does not arise, but u can keep the amount {round up only) in advances and adjust in march .

 

as the above trick works only for not regular TDS, if u pay exact amount and no cash/bank transaction takes place for the head while TDS is payable, then it would account for evasion.

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