26 August 2010
Expert, Link https://www.caclubindia.com/forum/how-to-book-tds-as-an-input-101169.asp has the TDS entry as below:
Debtors a/c dr TDS A/C DR TO INCOME/SALES/SERVICES A/C
TDS is to be deducted either on credit or on payment whichever is earlier....but the about entry is neither a credit or a payment. Is the above entry correct? on what basis??
26 August 2010
This is entry for TDS which is deducted by customer or debtor for providing service etc....not for TDS deducted by firm for its vendors...so TDS is debited
There are two seperate sets of entries. One for TDS payable and one for TDS receivable.
In case of TDS payable the entries mentioned by you are correct and in case of TDS receivable entries by Bansalji is correct. However he made a typographical mistake of writing TDS payable rather that writing TDS receivable.
That is the only mistake of wrodings nothing wrong in entry.
CAclubindia
