obalreddy (accountant) (282 Points)
29 April 2011Dear sir
My dout is How to entry the TDS DEDTCTION From another company, and my company is deduction another company
Ex:
total sales 1,45,000/-
tds deducation 14,500/- in the amount how to entry in tally.
Ex:
total purchase 1,25,000/-
tds deducation 12,500/- in the amount how to entry in tally
please clarified the dout sir
thanking you
GOREDDY
CA Amit Kumar Khaitan
(Research Analyst)
(360 Points)
Replied 01 May 2011
Hi Mr. Reddy,
I think there should not be a tax deduction on purchase and sale of goods. Please clarify regarding the nature of the transaction.
Regards,
Amit
Shriram Ramachandran
(IPCC Student CWA Inter & Processing officer in GNSA Infotech Ltd)
(492 Points)
Replied 01 May 2011
I too agree with Amit Sir.
I assume them as Professional Charges received & Professional charges Paid as both r deducted @ 10%.
Entry For Professional Charge Received
When Invoice is raised
Party A/c Dr 1,45,000
To Professional Income A/c 1,45,000
When Receipt of Amount
Bank/Cash A/C Dr 1,30,500
TDS (Asset) A/C Dr 14,500
To Party A/c 1,45,000
Entry For Professional Charge Paid
On receipt of Bill
Professional Charges A/c Dr 1,25,000
To Party A/C 1,12,500
To TDS (Liability) 12,500
On payment made
Party A/c Dr 1,12,500
To Bank/Cash A/c 1,12,500
I hope this would helped u
R Shriram.
CAclubindia
