what is the treatment of TDS receivable & TDS payable
This query is : Resolved
11 June 2010
Dear, sir\Madam
i would like to know that how will i record a transaction where i received Rs.900 after deducting Rs.100 Tds from a debtor.(journal entry. how will i adjust Tds? in the same manner what will be the journal entry, if i pay Rs.900 after deducting Tds?
Is it the case that the net of TDS receivable and payable will be paid to Govt.
Thanks in advance
i would like to know that how will i record a transaction where i received Rs.900 after deducting Rs.100 Tds from a debtor.(journal entry. how will i adjust Tds? in the same manner what will be the journal entry, if i pay Rs.900 after deducting Tds?
Is it the case that the net of TDS receivable and payable will be paid to Govt.
Thanks in advance
11 June 2010
NO TDS RECEIVABLE AND TDS PAYABLE CAN NOT BE SET OFF. TDS RECEIVABLE IS INCOME TAX PAID BY YOU ON YOUR INCOME AND TDS PAYABLE IS PAID BY YOU AFTER DEDUCTING THE SAME FROM DEDUCTEE. SO YOU ARE JUST DEDUCTING AND DEPOSITING.
ENTRY:
CASH/ BANK DR... 900
TDS RECEIVABLE 100
TO DEBTORS 1000
ENTRY:
CASH/ BANK DR... 900
TDS RECEIVABLE 100
TO DEBTORS 1000
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11 June 2010
For the receipt of Rs.900 after deducting Rs.100 TDS:
Bank A/c Dr Rs.900
TDS Receivable A/c(Current Asset) Dr Rs.100
Debtors A/c Cr Rs.1000
For the payment of Rs.900 after deducting Rs.100 to creditor:
Creditor A/c Dr Rs.1000
TDS payable A/c(Curr.liab) Cr 100
Bank A/c Cr Rs.900
When you pay TDS of above to the govt:
TDS payable a/c Dr.Rs.100
Bank A/c Cr Rs.100
When you receive TDS refund in first case:
Bank A/c Dr.Rs.100
TDS Receivable A/c Cr Rs.100
If you adjsuted against your tax liability:
Income Tax Exp A/c Dr.100
TDS Receivablke A/c Cr Rs.100
Bank A/c Dr Rs.900
TDS Receivable A/c(Current Asset) Dr Rs.100
Debtors A/c Cr Rs.1000
For the payment of Rs.900 after deducting Rs.100 to creditor:
Creditor A/c Dr Rs.1000
TDS payable A/c(Curr.liab) Cr 100
Bank A/c Cr Rs.900
When you pay TDS of above to the govt:
TDS payable a/c Dr.Rs.100
Bank A/c Cr Rs.100
When you receive TDS refund in first case:
Bank A/c Dr.Rs.100
TDS Receivable A/c Cr Rs.100
If you adjsuted against your tax liability:
Income Tax Exp A/c Dr.100
TDS Receivablke A/c Cr Rs.100
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11 June 2010
AGREED WITH EXPERTS.
TDS RECEIVABLE IS THAT AMOUNT WHICH YOU WILL CLAIM IN HIS INCOME TAX RETURN.
WHILE TDS PAYABLE IS YOUR LIABILTIY WHICH YOU HAVE PAID.
TDS RECEIVABLE IS THAT AMOUNT WHICH YOU WILL CLAIM IN HIS INCOME TAX RETURN.
WHILE TDS PAYABLE IS YOUR LIABILTIY WHICH YOU HAVE PAID.
Message likes :
1 times
11 June 2010
100% agreeing with CA. Ravi kumar
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