TDS Receivable Entry in Books of accounts

Sales entry when TDS

Sundry receivables      Ac dr

TDS Receivables.         Ac dt

To  sales

Sales entry when TCS

Sundry receivables.   

To  TCS payable

To.    Sales

You can make TDS receivable entry on the date of sale or as on invoice date. 

You can recognise TDS receivable when recording the sale if the customer has deducted TDS and you have reasonable evidence of the deduction, such as the remittance advice or Form 26AS/AIS credit. The entry is TDS Receivable Dr. and Customer Dr. (net amount) to Sales/Output GST, as applicable; alternatively, record the full customer balance at sale and transfer the TDS portion to TDS Receivable when the deduction is confirmed. Do not treat TDS as an expense.

For TCS, the entry depends on whether the transaction attracts TCS under the applicable provision and rate. If applicable, charge it to the buyer and record Customer Dr. ₹5,00,000 plus TCS to Sales ₹5,00,000 and TCS Payable for the applicable amount. The sale value alone does not establish that TCS applies or determine the rate; the nature of goods/service, buyer and seller status, and relevant thresholds matter.

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