TDS on Services

Hi Shalini,

There is no secific provision for TDS on services. you have to see whether payments made falls under which section of TDS and deduct TDS as per that section and other TDS rules.

Entry :-

When payment is nade - Contractor a/c ---- 'Dr'

                                                          To Cash a/c ----- 'Cr'

                                                          To TDS payable ----'Cr'

When TDS is paid - TDS payable ----- 'Dr'

                                               To Cash ------- 'Cr'

Hi Shalini,

We have to see nature of service rendered by person. In case of Professional Sevices like that of Chartered Accountant or Lawyer or so, it will be liable for tds u/s 194J. The slab is as follows.