Tds on commission

This query is : Resolved

rohit (Querist)
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19 July 2013 A PERSON HAS BEEN PAID COMMISSION OF 4900
NOW HE HAS BEEN PAID 300 RS?
HOW COMMISSION WILL BE PAID AND WHAT WILL BE THE ENTRIES?

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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19 July 2013 On 1st payment TDS was deducted or not?

If not Deducted:

Commission A/c Dr Rs 300
Party A/c Dr Rs 220
To TDS Payable A/c Rs 520

You will have to collect a further Rs 220 from part on account of TDS.

CA Kapil Verma

CA Kapil Verma (Expert)
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19 July 2013 TDS should be deducted on entire amount of rs 5200/- @ 10%.

so now the entry should be

Party Dr. 120
Commission 300
To TDs Payable 520.

and rs 120/- should be collected from party.

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CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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19 July 2013 Dear Kapil Ji...Please correct. It will be Rs 220 and not RS 120.