03 December 2018
as a basic rule, in cash accounting, you do not account for payables! as simple as that. As for as tax audit is concerned, your only concern should be that the TDS payable has been duly paid before the relevant due dates.
Querist :
Anonymous
Querist :
Anonymous
(Querist)
04 December 2018
Thank you sir. But in that case what will be the payment entry for TDS?
04 December 2018
you will account for TDS paid same as you do in accrual basis. Just that you would not account for TDS payable.
Querist :
Anonymous
Querist :
Anonymous
(Querist)
04 December 2018
TDS payable entry in Accrual basis will be: TDS payable A/c Dr To Bank/Cash A/c Which account to be debited in cash basis accounting sir? Do we need to debit respective expense account? because TDS amount cannot be treated as expense or do we need to proprietors capital account(as TDS receivable is adjusted with the same)?