Accounting of tds
This query is : Resolved
11 July 2014
Dear Experts,
Hello,
My query is
An assessee who is individual has paid some amount say Rs. 150000/- to a builder from whom he is going to purchase a residential flat. On this payment he has deducted tax @ 1% amounting to Rs. 1500 and duly deposited with government.
How to account this Rs. 1500, which is deducted tax by individual, in his books of accounts i.e . in the books of purchaser of residential flat?/
thanks in advance..
Hello,
My query is
An assessee who is individual has paid some amount say Rs. 150000/- to a builder from whom he is going to purchase a residential flat. On this payment he has deducted tax @ 1% amounting to Rs. 1500 and duly deposited with government.
How to account this Rs. 1500, which is deducted tax by individual, in his books of accounts i.e . in the books of purchaser of residential flat?/
thanks in advance..
12 July 2014
Hi Jigar,
TDS entries will be,
When TDS is deducted,
Party / builder's a/c. Dr.1500
To TDS payable a/c. Cr.1500
When TDS is deposited with govt.,
TDS payable a/c. Dr.1500
To Bank Dr.1500
Thanks,
Devanand
TDS entries will be,
When TDS is deducted,
Party / builder's a/c. Dr.1500
To TDS payable a/c. Cr.1500
When TDS is deposited with govt.,
TDS payable a/c. Dr.1500
To Bank Dr.1500
Thanks,
Devanand
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14 July 2014
thank you sir,
but will it capitalize with the cost of the building afterwards??
but will it capitalize with the cost of the building afterwards??
14 July 2014
Hi Jigar,
Total amount of Rs.150000 will be capitalized.
TDS will not affect value of building to be capitalized.
Total amount of Rs.150000 will be capitalized.
TDS will not affect value of building to be capitalized.
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