Sir/Madam/Experts
Please guide on this:
Free stock item received with other stock item (like one free for one) but product is different.
Stock item accounted as free in purchase, free in sales too with same stock item.
Now TDS u/s 194R paid by supplier on total value of that free stock, so we have to show that value as income to claim TDS, we cannot ignore it as it is showing in 26AS TDS amount.
If we show it as income as free gift, then question is where to debit it in books, as it is not payable to anyone.
Say free items value is Rs.1000.
I will credit it as gift income in P/L account, Rs.1000.
But where to debit it in books? The amount is not payable to anyone.
CAclubindia
