Rent adjustment on commission

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

19 March 2014 My friend has opened an exclusive branded showroom of a particular brand product.
The rent for the said showroom is being paid by the Brand Company and the rent is adjusted on his backend commission payouts receivable. My query is how to deduct TDS on rent and how to account the said rental adjustment in books

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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19 March 2014 1. The rent will become due every month (depending on the rent agreement at the beginning of each month or at the end of each month)

Rent A/c Dr
To TDS Payable
To Party A/c

2. Also commission will become due every month

Party A/c Dr
TDS Receivable A/c Dr
To Commission

Rent has been credited to the party and commission has been debited. The two are automatically settled. The balance will be payable/receivable.