TDS due entry who has to pass

This query is : Resolved

SUSHANT (Querist)
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22 November 2010 If a chartered accountant raising bill to client TCS ltd

what is the journal entry
whether due entry have to pass for TDS while
income recognizing.

can anybody solve the query

CA Anisha Ray

CA Anisha Ray (Expert)
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23 November 2010 TDS will be deducted by client on whom the bill is raised.
When the bill is raised entry to be passed by the Chartered is :-

Customer A/c .....Dr
To Service Revenue A/c
To Service Tax A/c.

The TDS entry will be passed only when you know that the party has deducted the TDS either from the 26AS statement or from the TDS certificate.

The entry to be passed at that point in time will be :-

TDS receivable A/c .....Dr.

To Customer A/c.

In case you know the amount of TDS with certainty at the time of billing you can also pass this entry:

Customer A/c ...Dr.
TDS receivable A/c ....Dr.

To Service Revenue A/c
To Service Tax A/c