Dear All,
I just wanted to know the Journal Entry when I recieve Commission Income. As far as I know, is this the entry:
Cash/Bank 80
TDS Recievable 20
To Commission Income 100
Is this entry correct? If yes, I also wanted to know is this TDS Recievable (a Current Asset) c/f throughout or is it reversed at the end of the year? I just wanted to know what are the cases when we can knock off TDS Recievable from the books?
Regards
Mohit
entry is correct,TDS receivable is current asset.
TDS receivable a/c can be knock off against tax payable,
if there is no tax payable can be knock off when u receive refund.
Are you sure we can set off TDS payable against TDS Recievable? Because Income Tax is a Direct Tax and not an Indirect Tax where set offs are possible?
u got me wrong not against TDS payable, it is against income Tax payable of of the person who is receiving commission.I hope u know TDS is like advance tax on behalf of u the payer of income pays to govt. on receiveing form 16A u can claim credit.
Reversal entry,
1)Income tax a/c dr 100
to income tax payable 100
2)Income Taxpayable a/c dr 100
to TDS receivable a/c 20(u r case reversed)
to cash/bank 80
i hope u got me now :)
Cool... Thanks Manjunath :)
CAclubindia
