Tds receivable on sale invoice

TDS is to be deducted at the rate of 2 percent on payments made to the supplier of taxable goods and/or services, where the total value of such supply, under an individual contract, exceeds two lakh fifty thousand rupees. No deduction of Tax is required when the location of supplier and place of supply is different from the State of the registration of the recipient.

Time of supply of goods is earliest of:

1. Date of issue of invoice

2. Last date on which invoice should have been issued

3. Date of receipt of advance/ payment.

 Date of Receipt of the payment by supplier: Payment is entered into the books of the account or credited in his bank account whichever is earlier.

 If invoice is not issued and date of payment or date of completion of provision of service are also not ascertainable, than the time of supply shall be the date on which the recipient shows the receipt of services in his books of accounts.

 If continuous supply of goods. than earliest of the following:

♦ Time when each statement is issued.

♦ Time when each payment is received.

On Sale

Debtor A/c Dr.

To Sales A/c

On receipt

Bank A/c Dr.

GST TDS A/c Dr.

To Debtor A/c