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Tds

vindhya (accountant) (92 Points)

11 May 2013

rent is 323035 how can entry in reimburse

A company deduct tds we have enter in A company Dr.rent 323035 Cr.tds 32304 Cr.Party 290731

how can enter in b company reimbursemnt entry

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4 Replies

Sonam Bidasaria (CA) (770 Points)
Replied 11 May 2013

In the case of Company A, you have not made any payment. So, if u want to show that entry in Company B, it will not amount reimbursement as no there is no outflow of money from Company B to Company A.

Simply delete the entry from A's books of account or pass a JV to give the null effect in A's book and pass the original entry in the Books of Company B.

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vindhya (accountant) (92 Points)
Replied 13 May 2013

thanks mam we are do the payment to party in A company after b company give our payment

Sonam Bidasaria (CA) (770 Points)
Replied 13 May 2013

Suppose, when you are paying rent from Company A...then entry, which u might have passed,will be:

Rent A/c Dr 100

To bank 90

To TDS Payable 10

Just make sure this TDS liability is not paid by Company A and along with reimbursement of rent by Company B, TDS liability should also be transferred to Company B.

Entry in Company B's Book

Rent A/c Dr 100

To Company A/ Bank 90

To TDS Payable 10

Entry in Company A's Book

Company B/ Bank/ Cash Dr. 90

TDS Payable Dr 10

To Rent 100

vindhya (accountant) (92 Points)
Replied 14 May 2013

thanks mam i do the entry one more doubt clear to me pls our all staff salary( salary range 5000 to 50000) paid A company then pass the reimburse entry in B company they paid our payment after. not a one entry seperate entry pass in B company reimburse then we deduct tds in total amount of salary eg. all staff salary 400000/- we deduct tds 2% U/s 194C this is true or false pls explain & help me