18 December 2011
good morning sir i am a pcc student and in articles. i have the doubt accounting treatment,
if accounts are maintaining in cash basis. (ie,. income and expenditure, receipt and payments accounts and balance sheet,the amount deducted from service provider as a tds which has not been deposited with concerned departments. here i have doubt regarding the accounting treatment of outstanding tds payment till it was not deposited with authority.
postulation of treatment by me for example we have taken a service from a service provider.
and paid net amount of Rs.980/- and the deduction of rs.20.
in income and exp
have we to disclose the Rs.1000/- or Rs.980/-.
in case gross amount shown in income and exp what about what is the treatment of Rs.20/-
18 December 2011
Exp will be INR 1000 only, as tax deducted is the income of the deductee. this fact is well accepted even dealing with the complicated invoices having service tax credit issues.
CAclubindia
