Naveen (CA Final, B Com (A&F)) (122 Points)
15 April 2011What head of account should be debited if a professional gives 2 separate bills (one for rendering the service - debited as "Professional Charges", the other for claiming expenditure incurred by him for printing on behalf of the client)
Will the second bill be accounted as "Professional Charges" or as "Printing & Stationery"?
Please reply...
Ramanna Gouda
(Article Assistant)
(25 Points)
Replied 15 April 2011
It can be to the debited to the work for which the printing expenses are incurred...
Naveen
(CA Final, B Com (A&F))
(122 Points)
Replied 15 April 2011
Also, should TDS be deducted if the expense is booked as professional charges?
If not, why?
sajay kumar
(IPCC STUDENT)
(162 Points)
Replied 15 April 2011
bettter , separate the two bills & debit professional charges excluding printing charges. deduct tds amount from professiona charges
Devendra
(Chartered Accountant)
(4775 Points)
Replied 15 April 2011
1) YOU CAN DEBIT BOTH THE BILLS TO PROFESSIONAL FEES A/C.
2) IF BOTH THE BILLS ARE SEPARATE, THEN TDS IS TO BE DEDUCTED U/S 194J @ 10% ONLY ON THE BILL INCLUDING PROFESSIONAL FEES AND ONLY IF THE PROF. FEES AMT. IS ABOVE RS. 30000.
3) IN YOUR CASE THERE IS NO NEED TO DEDUCT TDS ON THE PRINTING BILL SUBMITTED BY THE PROFESSIONAL.
3) BUT, IF HE SUBMITS A CONSOLIDATED BILL WHICH INCLUDES PROFESSIONAL FEES AND PRINTING CHGS, THEN TDS IS TO BE DEDUCTED ON WHOLE BILL.
REGARDS,
DEVENDRA K
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