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query related to TDS

10 October 2007

Hi Friends,

If TDS is mentioned on the debit side of the ledger, then we show it in the loans and advances heading or if it is mentioned in the credit side, then we show it in the Loans and advances payable heading, CAN anyone tell me the reason for this? (The firm is a partnership firm)

Hey there is one more question. Why we show TDS in the assets side?

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7 Replies

Late CA Sampat Jain (Chartered Accountant) (4772 Points)
Replied 10 October 2007

TDS is nothing but advance tax paid by you ....so it is advance also an asset

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(Guest)

TDS Liabilty is collected but unpaid in govt treasury(which needs to paid) TDS Assets... Client deducted on bills paid by them which is as good as tax paid in advance ... I hope it is clear to u

(Guest)

Yaar when others deduct tds from payment they make to you it is in the nature of current assest (just like advance tax paid) i.e. a debit balance while when you deduct tds from payments you make to others it is tds payable i.e. its a credit balance unless you pay the same to the credit of govt.

(Guest)

if we show it as a current asset how do we claim in it the current year????? do we pass an entry when we claim... instead we can show it under indirect expenses and add back as an inadmissable and adjjust it off against the tax liability... isnt it???????