TDS DEDUCT ON INTEREST PAID TO COMPANY

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rajesh (Querist)
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31 October 2009 DEAR ALL

IF TDS IS DEDUCT ON INTEREST PAID TO COMPANY WHICH BOOK OF ENTRIES IS PASSED AND IN TEREST IS INDIRECT INCOME AND TDS IS WHICH TYPE OF EXP I.E DIRECT OR CURRENT ASSET

PLEASE TELL

THANKS IN ADVANCE

Seema

Seema (Expert)
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31 October 2009 It wld b Liability... as u hav to deduct it & deposit to the credit of Govt

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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31 October 2009 Entries in the books of the person making the payment of interest is as follows :-

1) Interest a/c Dr 1000/-
To TDS a/c 100/-
,, Abc Ltd 900/-
(Being interest payable and its
tds accounted)

2) TDS Dr 100/-
To Bank 100/-
(Being tax deducted from Abc Ltd
remitted to Govt through bank)

3) Abc Ltd Dr 900/-
To Bank 900/-
(Being payment made on account
toward interest)

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Rahul Vora

Rahul Vora (Expert)
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31 October 2009 Scheme of entries in the books of the person receiving the interest will be as follows,

1) Bank A/c Dr 90/-
TDS Receivable A/c Dr 10/-
To XYZ Ltd 100/-
(Being interest received from XYZ Ltd. accounted for and TDS thereof)

TDS Receivable is to be shown under Current Assets in B/S

rajesh

rajesh (Querist)
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02 November 2009 IF INTEREST IS RECEIVED TO OUR COMPANY WITH TDS DEDUCT AT THIS CASE WHICH TY PE OF BOOK ENTRIES WE PASSED AND A/C TYPES I.E REVENU AND CAPITAL IF TDS IS SHOWN IN BALANCE SHEET IN ASSETS SIDE THIS A/C HOW TO WRITE OFF AND WHICH ENTRIES WE PASSED

PLEASE TELL