Tds recievable - doubt

entry is correct,TDS receivable is current asset.

TDS receivable a/c can be knock off against tax payable,

if there is no tax payable can be knock off when u receive refund.

Are you sure we can set off TDS payable against TDS Recievable? Because Income Tax is a Direct Tax and not an Indirect Tax where set offs are possible?

u got me wrong not against TDS payable, it is against income Tax payable of of the person who is receiving commission.I hope u know TDS is like advance tax on behalf of u the payer of income pays to govt. on receiveing form 16A u can claim credit.

Reversal entry,

1)Income tax a/c dr              100

        to income tax payable                   100

2)Income Taxpayable a/c dr      100

         to TDS receivable a/c                     20(u r case reversed)

         to cash/bank                                    80

i hope u got me now :)

Cool... Thanks Manjunath :)