How to book TDS as an input

suppose for contracors (if ur deductor)

Expenditure a/c DR

TO Creditor a/c

To TDS A/C

We have to pay this TDS Amount before 7th of subsequent month then entry is

TDS A/C DR

TO BANK A/C

IF you are service provider then

Debtors a/c dr

TDS A/C DR

TO INCOME/SALES/SERVICES A/C

This amout u have to deduct from tax at the year end

Income tax a/c dr

To TDS a/c

To provision for Tax a/c

Agree with Mr. Sudhakar

ok mr. sudhir  is right

please tell me your nature of businness

AGREED WITH MR. SUDHAKAR.

YOU HAVE TO CREATE TWO ACCOUNTS.

1. TDS PAYABLE  UNDER SUBGROUP DUTIES & TAX PAYABLE GROUP CURRENT LAIBILITEIS

IN WHICH YOU HAVE TO BOOK TDS WHICH IS DEDUCTED BY YOU.

TDS PAYABLE IS TO DEPOSITED MONTHLY BASIC.

2. ADVANCE TAX & TDS UNDER SUBGROUP LOAN & ADVANCES GROUP CURRENT ASSETS.

IN WHICH YOU HAVE TO DEBITED TDS DEDUCTED BY PARTY ON YOUR ACCOUNT AND ADVANCE  TAX.

ADVANCE TAX & TDS IS ACCUMULATED TILL END OF FINANCIAL YEAR AND ADJUSTED WITH INCOME TAX LIABILITY FOR THAT FINANCIAL YEAR.

HI...Vinayak...simple if u want to book tds entry,,then u have 2 book u r income or receipt with gross amount and dr will bw u r cash or bank & Tds receivable.... if u r tds deducted on int income then entry will be

       int a.c dr

to bank

to tds receivable

eg.interest payment,,,entry will be

1..At the time of deduction

interest a/c     Dr

to sundry creditor a/c        Cr

to tds payable   a/c            Cr

2..on the date of payment of tds

tds payable a/c   Dr

to  cash / bank   a/c            Cr

however for interest income entries as follows

tds receivable a/c         Dr

sundry debtors a/c       Dr

to interest    a/c

however if income tax payable by assesse is less than tds amount ,first set off portion of income tax with tds receivable a/c, balance tds receivable a/c shall carry forward till refund is granted to assesse  the entry as follows

income tax a/c          Dr

to tds receivable a/c

on receipt of refund amount entry as follows

bank/cash a/c        Dr

to tds receivable a/c

for any other direct payment other than interest the  first entry as follows

expenditure a/c  Dr 

to tds payable a/c   

to cash / bank a/c

similarly for any other direct income other than interest the first entrty as follows

tds receivable a/c  Dr

cash / bank a/c  Dr

to income a/c

agree with sudhakar.........