TDS and payment Provission in Group Company - Urgent
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
19 May 2010
Dear Experts,
we have open a new company but has not open any bank for same company. now we have received a 1st bill of expense and have to make a payment for same bill.
can i do this payment by our group company.
example new company is A and Group company is B.
Entry in the Books of B
A Company A/c dr
To Bank A/c
In the Books of A
Expense A/c Dr
To TDS 10 %
To B Company (Credit given to B Company)
is both of entry is ok if wrong please suggest right entry.
Actually i am confusing about the tds where it should be deduct in the books of A or in the books of B.
Please Guide me.
Regards
Ravinder
we have open a new company but has not open any bank for same company. now we have received a 1st bill of expense and have to make a payment for same bill.
can i do this payment by our group company.
example new company is A and Group company is B.
Entry in the Books of B
A Company A/c dr
To Bank A/c
In the Books of A
Expense A/c Dr
To TDS 10 %
To B Company (Credit given to B Company)
is both of entry is ok if wrong please suggest right entry.
Actually i am confusing about the tds where it should be deduct in the books of A or in the books of B.
Please Guide me.
Regards
Ravinder
19 May 2010
Dear Mr. Ravinder,
TDS will be deducted in the books of that company by which the bill related i.e In your case Company A.
In the books of A , you should have to book expenses by name of supplier or service provider
i.e
Expense A/c Dr.
To Service provider Mr. Y
To TDS Payable
Now
Service Provider Mr. Y Dr.
To Company B
( Being payment made by Company B on behalf of us)
In the books of Company B
Company A Dr
To Bank A/c
It is advisable to book expenses by the name of service provider,otherwise at the time of filing of TDS return you will confused.
TDS will be deducted in the books of that company by which the bill related i.e In your case Company A.
In the books of A , you should have to book expenses by name of supplier or service provider
i.e
Expense A/c Dr.
To Service provider Mr. Y
To TDS Payable
Now
Service Provider Mr. Y Dr.
To Company B
( Being payment made by Company B on behalf of us)
In the books of Company B
Company A Dr
To Bank A/c
It is advisable to book expenses by the name of service provider,otherwise at the time of filing of TDS return you will confused.
Querist : Anonymous
Querist :
Anonymous
(Querist)
19 May 2010
Thanks a Lot with good example.
Regards
Ravinder
Regards
Ravinder
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