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TDS payments disclosure in Receipts and Payments account

(Guest)

Hello members,

For example, when the TDS is deducted on salaries and paid, whether it will be shown as TDS paid or along with salaries cost?

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11 Replies

CA Kiran Sutrave (CA) (428 Points)
Replied 23 December 2019

It is to be shown as Statutory Payments (TDS). This is not to be clubbed with salary cost

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RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 23 December 2019

Yes... I agreed to Mr CA Kiran Sutrave.,

TDS on salary paid is not a salary cost. It's statutory activities after deducting in Salary amount...

Kapadia Pravin (17259 Points)
Replied 23 December 2019

What do you mean by Receipts and Payments Account ?
Are you referring to Trust I/E Account ?
Are you referring to Fund Flow Statement ??
please let know Manish ji

(Guest)

Originally posted by : Kapadia Pravin
	What do you mean by Receipts and Payments Account ? Are you referring to Trust I/E Account ? Are you referring to Fund Flow Statement ??please let know Manish ji

Yeah, I was asking about trust's accounts.

I'm in doubt how the nature of entity will affect the disclosure in it?

Thank you Kiran and Raja. For that I'll need to separate PF deductions also.

Kapadia Pravin (17259 Points)
Replied 24 December 2019

TDS deduction A/c is a Balance Sheet item and has not anything to do with R&P Account or I&E Account.

At the year end, whatever unpaid TDS will be shown as outstanding liability (statutory).

The similar is for PF deduction.

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(Guest)

Originally posted by : Kapadia Pravin
	TDS deduction A/c is a Balance Sheet item and has not anything to do with R&P Account or I&E Account.At the year end, whatever unpaid TDS will be shown as outstanding liability (statutory).The similar is for PF deduction.

I was referring the TDS payments during the period. Are these shown separately or with respective expenses payments in R&P?

I didn't ask for TDS liability closing balance.

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 24 December 2019

Yeah... Better to show it separately then We can check it as per percentage of deductions...

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Kapadia Pravin (17259 Points)
Replied 24 December 2019

TDS deductions , PF deductions are not shown seperately in R&P / I&E Account.

They are mere deductions. Salary is a gross figure being shown under payments.

It is odd and inappropriate to show them seperately as expenditure /payments

They are employees money deducted from their salary for onward payment on their behalf to the Government.

They ( Deductions) are not expenditure ledgers.

Employer's contribution by default are a seperate payments in itself.

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