Sujit Kumar Sahoo (audit assistance) (56 Points)
25 June 2019Dear Sir,
We are manufacturing of alluminum utensils ,had a contract for supplying aluminium utensils to one govt Department.where we had the contract paper written after deducting TDS CGST 1% and SGST 1%.The bill is issued 10th september 2018 where the payment received 25th December after deducting tds amount.My question is when we will entry tds receivable entry in books of accounts.
CA Rakesh Ishi
(Working at Private Company)
(8202 Points)
Replied 25 June 2019
TDS is to be deducted at the rate of 2 percent on payments made to the supplier of taxable goods and/or services, where the total value of such supply, under an individual contract, exceeds two lakh fifty thousand rupees. No deduction of Tax is required when the location of supplier and place of supply is different from the State of the registration of the recipient.
Time of supply of goods is earliest of:
1. Date of issue of invoice
2. Last date on which invoice should have been issued
3. Date of receipt of advance/ payment.
Date of Receipt of the payment by supplier: Payment is entered into the books of the account or credited in his bank account whichever is earlier.
If invoice is not issued and date of payment or date of completion of provision of service are also not ascertainable, than the time of supply shall be the date on which the recipient shows the receipt of services in his books of accounts.
If continuous supply of goods. than earliest of the following:
♦ Time when each statement is issued.
♦ Time when each payment is received.
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