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TDS presentation and journal entries

Yasaswi Gomes new (Finance ) (4514 Points)

06 July 2023

A sold goods to B worth 1000. TDS is 5% and GST is 18%.

What are the journal entries that needs to be passed in the books of Buyer & Seller?

Txs

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4 Replies

prasad Nilugal ( GST Practitioner & Accounts ) (14801 Points)
Replied 06 July 2023

Assuming that B has deducted TDS , entries are as follows.

In the books of A ( seller)

B A/c Dr
To Sales A/c Cr
To Out put CGST A/c Cr
To Out put SGST A/c Cr
( sale of goods to B )

Receipt entry

Bank A/c Dr
TDS receivable A/c Dr
To B A/c Cr
( receipt of money after deduction of TDS )

--------------------------------

In the books of B ( Byer)

Purchase A/c Dr
Input CGST A/c Dr
Input SGST A/c Dr
To A A/c Cr
To TDS payable A/c Cr
( purchase of goods from A)

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RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 06 July 2023

@ Mr** Yasaswi Gomes New,

Are You asking the TDS means TCS..?
Bcoz, As per Your query SOLD GOODS...

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Yasaswi Gomes new (Finance ) (4514 Points)
Replied 06 July 2023

I thought TCS and TDS both mean the same. With a difference between goods and services, the names change perhaps. Sold is correct either cash or credit sales

prasad Nilugal ( GST Practitioner & Accounts ) (14801 Points)
Replied 07 July 2023

Section 194 Q TDS (0.1% ) is applicable to buyer, who purchase goods exceeding 50 lacs during the year . please refer section 194 Q of the income tax Act.