hello....
My query is ------
A co. credits its customer's a/c on account of freight paid by its customer.
Whether TDS should be deducted on the amt credited on account of freight.
( Amt. exceeds 50000 during the year )
hello....
My query is ------
A co. credits its customer's a/c on account of freight paid by its customer.
Whether TDS should be deducted on the amt credited on account of freight.
( Amt. exceeds 50000 during the year )
No.
This transactions is Debit note on customer, but at time of payment/accounting ransport service invoice, we need to deduct TDS. Accounting Entry like as follows
1.Accounting transport bill
Transport Expenses Account Debit XXX
TDS on Transporter Charges XXX (if applicable according to IT act)
Transpoter Account Credit XXXX
2. Debit Note
Cusotmer Account Debit XXXX
Transport Expenses Account credit XXXX
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