Sandeep Sharma (Accounts executive) (552 Points)
19 September 2019
Sandeep Sharma
(Accounts executive)
(552 Points)
Replied 19 September 2019
sabyasachi mukherjee
(27574 Points)
Replied 19 September 2019
Sandeep Sharma
(Accounts executive)
(552 Points)
Replied 19 September 2019
Mam, i didn't get your answer...could u plz elaborate?
sabyasachi mukherjee
(27574 Points)
Replied 19 September 2019
Sandeep Sharma
(Accounts executive)
(552 Points)
Replied 19 September 2019
Sorry for name confusion sir, Sir i am booking journal entry for tds on royalty under section as below:-
Royalty fee A/c Dr 10000
To tds payable A/c Cr. 1000
To health & education cess payable A/c Cr. 40
To Party A/c Cr. 8960
Is this entry right in books?
sabyasachi mukherjee
(27574 Points)
Replied 19 September 2019
Sandeep Sharma
(Accounts executive)
(552 Points)
Replied 19 September 2019
Sir it means we will first book cess in liability account as i booked in first entry then we will debit it when making payment...is it right??
Suresh Thiyagarajan
(Student)
(3986 Points)
Replied 19 September 2019
1. TDS u/s 195 is to be deducted at the rates in force. TDS for royalty is to be deducted @ 10% (at the rates in force). Edu cess on 10% comes to 10.4% effectively.
2. Before making the payment to Non Resident TDS u/s 195 @ 10.4% is to be deducted.
3. If failed to deposit the amount of tax, then interest @ 1.5% p.m is to be paid on the entire amount of TDS deducted.
4. In your case interest is to be calculated on the entire amount of tax (including Edu cess) and arrive at interest u/s 201(1A).
Please correct me if the above solution has an alternative view.
Sandeep Sharma
(Accounts executive)
(552 Points)
Replied 19 September 2019
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