Tds deducted by our vendor

This query is : Resolved

Gurvinder Singh (Querist)
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20 October 2014 Kind Attn :Dear Sir/Mam

Pls adv:

Our Vendor has deducted TDS on us. Details as follows:

Amt to be paid to vendor.......
less Commission given to us by vendor........
TDS Deducted by vendor.........
Total Payable by us to vendor..........

Kindly explain the Dr and Cr entries.

Thanks

Gurvinder Singh

CA Devanand Jethanandani

CA Devanand Jethanandani (Expert)
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20 October 2014 Lets say amount payable to vendor is Rs.10,000 and our commission is 10% on it.

Expense (mention a/c head) A/c. Dr. 10000
To vendor a/c. Cr.10000

Vendor a/c. Dr.900
TDS receivable Dr.100
To commission income a/c Cr.1000

Payment to be made to the vendor will be Rs.9100 (i..e. 10000-900)

Entry

Vendor a/c. Dr/9100
To bank a/c. Cr.9100

Thanks.