What 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...
Please help me out...
It can be to the debited to the work for which the printing expenses are incurred...
Also, should TDS be deducted if the expense is booked as professional charges?
If not, why?
bettter , separate the two bills & debit professional charges excluding printing charges. deduct tds amount from professiona charges
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
CAclubindia
