23 August 2011
proprietorship Concern :namely PEC, (a Tution coaching centre) Another wings of the same concern PSGP Ltd.(middle man) Creditors raised addv & Printing bill on PSGP Ltd say Rs. 1000/-, Then PSGP raised bill on orginal assessee added 12% there commission and raised invoice of Rs. 1200/-,No one deduct TDS under sec 194C. Now PEC paid TDS of Rs. 10/- (not Rs. 12/-)out of its own pocket,
please clarify me whether following entry is correct, Addvrtisement ..Dr 1000 To Orginal Creditors 990 to TDS 10
Orginal Creditors Dr 990 Advertisement dr. 210 To PSGP 1200/-
TDS Payable Dr 10 PSGP 1200 To Bank 1210/-
if wrong what will be the correct entry cosidering TDS provision ?
27 September 2011
as per explanation given by you it seems that PGSP is working on our behalf and carrying the transaction on our name as business auxillaiary services
27 September 2011
Since, PGSP is working as agent for you therefore u r required to deduct TDS u/s 194 H @ 10 % if the yearly amount exceeds prescribed limit of Rs 5,000
CAclubindia
