TDS APPLICABILITY
This query is : Resolved
23 September 2010
Dear Sir - is TDS applicable under the following circumstances?
Orgn.'A'issues a debit note to orgn 'B'(both are separate leagal entities)for professional/tech services rendered by 'A's employees to 'B',asking B to debit it in its books with corresponding credit to 'Grant from 'A'. In fact 'A' pays salaries to its employees and recovers TDS u/s 192 regularly. In short 'A' wants the total salary costs of some of its employees to be booked by 'B'. What could be the best accounting head for 'B'? Should TDS be recovered by 'B'?
Orgn.'A'issues a debit note to orgn 'B'(both are separate leagal entities)for professional/tech services rendered by 'A's employees to 'B',asking B to debit it in its books with corresponding credit to 'Grant from 'A'. In fact 'A' pays salaries to its employees and recovers TDS u/s 192 regularly. In short 'A' wants the total salary costs of some of its employees to be booked by 'B'. What could be the best accounting head for 'B'? Should TDS be recovered by 'B'?
23 September 2010
Your question in not very clear.
Even though, i am trying to reply to your apparent query.
(A)'s employee serves for (B). (A) sends debit note on (B).
So entry in (B)'s books :
1. Professional services Dr.
To (A) Cr.
2. (A) Dr.
To Grant from (A) Cr.
Now, (A) pays salary to its employee after deducting due TDS.
But (A) raises debit note on (B) for gross salary amount.
If my above understanding of your query is correct then,
Salary payment by A to its employee is its internal matter.
Raising debit note is separate matter.
the TDS question will arise when the debit note is booked by (B).
In the entry in (B)'s books will be :
1. Professional services Dr.
To (A) Cr.
2. (A) Dr.
To Grant from (A) Cr.
To TDS payable (Prof Services) Cr.
I hope its clear...
Even though, i am trying to reply to your apparent query.
(A)'s employee serves for (B). (A) sends debit note on (B).
So entry in (B)'s books :
1. Professional services Dr.
To (A) Cr.
2. (A) Dr.
To Grant from (A) Cr.
Now, (A) pays salary to its employee after deducting due TDS.
But (A) raises debit note on (B) for gross salary amount.
If my above understanding of your query is correct then,
Salary payment by A to its employee is its internal matter.
Raising debit note is separate matter.
the TDS question will arise when the debit note is booked by (B).
In the entry in (B)'s books will be :
1. Professional services Dr.
To (A) Cr.
2. (A) Dr.
To Grant from (A) Cr.
To TDS payable (Prof Services) Cr.
I hope its clear...
23 September 2010
Tell me if your query is still not resolved ?
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Transferring CA articleship from old to new scheme of education and training
- GST Refund SB005 Error
- Notice u/s.148- Asstt.Year 2015-2016
- Invoice Numbers WROGLY ENTERED
- TDS on purchase of value vouchers for employees ?
- PAYMENT TO OPEN AI AND ENVATO ELEMENT
- Issue of gst e invoice
- Interchangeable words in accounts
- Adjusted profit/Loss in the case of LLP and Pvt. Ltd.company
- How to adjusted advances given or receipt
Trending Online Classes
-
Excel Mastery Program
CA Rishabh Pugalia
CAclubindia
