Tds

Originally posted by : dhanalakshmi
	SIR, what are the  entries requaired to pass when  tax deducted at the time of payment and rendering it to the govt?

1) For deduction of TDS

Expense A/c...................Dr 100

To TDS Payable A/c......................10

To Party A/c..................................90

2) For Payment of TDS

TDS Payable A/c.............................Dr 10

Interest on Duties & Taxes A/c.........Dr. IF ANY

To Cash/Bank A/c..........................................................[10+Interest (If any)]

3) For Payment made to Party

Party A/c..................Dr 90

To Cash/Bank A/c....................90