Say royalty is to be paid Rs. 89.6.
TDS grossed up 10.4 Rs.
Total outflow 100 Rs.
So profit and loss a/c will have royalty expense head of Rs. 100 ???
OR
Royalty expense head of Rs. 89.6
and taxes paid expense of Rs. 10.4???( Also will 10.4 be disallowed in tax computation as it is income tax paid )
Menu
Grossing Up of TDS on Non-resident Payments
Replies (3)
Quick Summary
Yes in profit and loss a/c Royalty expenses should be shown as 89.6 rupees and TDS amount should be provisioned or tax expenses
Royalty expense will be debited with Rs. 100 and TDS will be credited with Rs. 10.4
| Originally posted by : Puneet Matha | ||
 |
Royalty expense will be debited with Rs. 100 and TDS will be credited with Rs. 10.4 |  |
This is the correct way to show the royalty expenses.
Recent Topics :
- GSTR1 amendment Bulk bills
- Capital Gain on Sale of Gold
- GST SALES RETURN MISSING 2025-26 FY
- Enquiry on FAST-DS system generated email
- Capital gain on sale of agriculture land
- Demand from TRACES
- FY 2025-26 ITC CLAIM DUE DATE
- 96084000 and 48202000 HSN code ka Tax Rate kya hai
- Clarifications for intra day transactions
- CA FINAL FR FINANCIAL INSTRUMENTS (Ind AS 109) Dou
Related Topics :
CAclubindia
