Tax deducted at source

This query is : Resolved

puja chitlangiya (Querist)
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22 September 2012 In case of NBFC, institutions, while paying them the installment (principal+interest), which is under an ECS facility, how should the entry of TDS on interest be done.

CA. Sunil Kumar

CA. Sunil Kumar (Expert)
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23 September 2012 Deduct TDS and provide the challan to them and they will refund the same to you.

Suppose ECS Interest is 3000/-

Interest Exp Dr. 3000

To NBFC 30000

NBFC Dr. 3000
TO BANK (ECS) 3000

NBFC Dr. 300

To TDS Payable 300

TDS Payable Dr. 300

To Bank 300

When NBFC paid you the amount deposit as tax then following entry will pass

Bank A/c Dr. 300

To NBFC 300