TDS presentation and journal entries

Hi

A sold goods to B worth 1000. TDS is 5% and GST is 18%. 

What are the journal entries that needs to be passed in the books of Buyer & Seller?

Txs

Replies (4)
Quick Summary
This discussion explains the necessary journal entries for both the buyer and seller when goods are sold with Tax Deducted at Source (TDS) and Goods and Services Tax (GST) applied. It provides specific accounting entries for each party, covering both the initial sale/purchase and the subsequent receipt of payment after TDS deduction. The conversation also clarifies potential confusion between TDS and TCS, and mentions Section 194Q of the Income Tax Act regarding TDS on the purchase of goods.

Assuming that B has deducted  TDS , entries are as follows.

In the books of A ( seller)

B A/c Dr
To Sales A/c Cr
To Out put CGST A/c Cr
To Out put SGST A/c Cr
( sale of goods to B )

Receipt entry

Bank A/c Dr
TDS receivable A/c Dr
To B A/c Cr
( receipt of money after deduction of TDS )

--------------------------------

In the books of B ( Byer)

Purchase A/c Dr
Input CGST A/c Dr
Input SGST A/c Dr
To A A/c Cr
To TDS payable A/c Cr
( purchase of goods from A)

@ Mr** Yasaswi Gomes New,

Are You asking the TDS means TCS..?
Bcoz, As per Your query SOLD GOODS...

I thought TCS and TDS both mean the same. With a difference between goods and services, the names change perhaps. Sold is correct either cash or credit sales  

Section 194 Q TDS (0.1% ) is applicable to buyer, who purchase goods exceeding 50 lacs during the year . please refer section 194 Q of the income tax Act.

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