Question { 3186 }

a x company deduct tds against our bills so how i entry this
type of transaction in talyy 9.0 ?

Answer

Entry of TDS deducted is normally made a the time of
receiving payment and not at the time of booking the bills
in tally. Following entry is done:

Bank A/c Debit
TDS Deducted A/c Debit
To Party A/c Credit

Question { 6177 }

when we reqiure C form from Party?

Answer

What is C form: As per section 8(1) (b) of CST Act 1956
sales tax on interstate sales is 2% or state rate whichever
is lower, if the sale is to a registered dealer and goods
are covered in the registration certificate of the
purchasing dealer. Otherwise the tax applicable is the state
rate applicable on the goods sold.

If the selling dealer pays CST @ 2% i.e @ concessional rate
then he has to produce proof to his sales tax assessing
authorities that the purchasing dealer is eligible to get
these goods at concessional rate. Otherwise the selling
dealer will be asked to pay balance tax payable plus penalty
as applicable. Therefore section 8(4)(a) provides that
concessional rate is applicable only if purchasing dealer
submits a declaration in prescribed form C.

Number of Transactions per C forms: One declaration in C
form can cover all transactions in one quarter, irrespective
of total amount/value of transactions during the quarter.
(Quarter means period of three months). If a transaction
covers more than one quarter, separate C form is required to
be issued for each quarter.


Although there is specific time frame in which the C form
has to be by the party, However since it is issued to cover
the transaction of one quarter hence the practice of
collecting C form every is considered as good practice and
it is being followed at prensent in most of the industries.

Question { 8284 }

can any one explain why tds receivable comes on loans and
advances(assets)..?

Answer

TDS Receivable means the TDS that is deducted by the your
customer or the Bank and financial institution on interest.
The nature of this item is similar to the Advance Tax paid
by the Company, since the amount of TDS is also adjusted
frim the Tax liability of the Company when you are making
the Computation.

There are four major category of Current Assets in the
Balance Sheet:

1. Cash and Cash Equivalent, TDS receivable is in the nature
of advance tax and can not be termed as cash and cash
equivalent, Even though you are claiming it as refund in
your ITR you have to wait for the refund order by your
assessing officer for getting the refund in your bank
account, it can not be withdraw like bank balance.

2. Debtors
3. Inventory

4. Loans and Advance ( for balancing items): Like
Advance/Prepaid taxes it is also classied as Loans and Advances.

Hope this will clear your question.