13 March 2014
Hi Everyone, I have one query i.e a company pays rent to the owner of the building Rs.23000/- pm by 2 cheques 1 is of Rs.10000 & other is of Rs.13000, total is Rs.23000/-, is TDS deductable if yes then how to deduct TDS & how to make the entry for the same in tally. plz... help.
13 March 2014
It is deducted on the whole amount of Rs 23000/- whether u paid it by breaking the amount or clubbing it. The party is same & u r also paying for the same service(i.e, rent).
Journal:-
Rent Paid Dr To Bank To TDS (Being rent paid to ..... for the month of.... through cheque Nos..... .........)
13 March 2014
According to the section 194I if the total rent Rs.1,80,000/- p.a paid to a single person then TDS shall be deduct @10%(if pan of the rent receiver not provided or not available then 20%).
If you paying total of such Rs.23,000/- p.m to a single person then required to deduct TDS at the time of payment or entry into the books which is earlier.
The entry to deduct TDS is If the payment of rent is earlier then
Rent a/c dr 23000 To Cash/Bank a/c 20700 To TDS deducted a/c 2300 (Being rent paid after deduction of TDS)
If the passing of entry in the books is earlier then
Rent a/c dr 23000 To Owner a/c 20700 To TDS Deducted a/c 2300 (Being rent payable after deduction of TDS)
at the time of payment to owner Owner a/c 20700 To Cash/Bank a/c 20700 (Being amount payable is paid)
At the time of TDS deducted deposited into the bank
TDS deducted a/c dr 2700 To Cash/Bank a/c 2700 (Being TDS deduction amount deposited into the bank)
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