Answer / m bharath

TDS A/c Dr.
To Party A/c.

Suppose "A" is a company providing Cab Services to "B" an individual. (Cab Hiring Charges Rs. 1,00,000/- P.M) As per Income Tax Act, payment more than 50,000/- to Individual / Company has to deduct the TDS @ 1%/2%.

Entries in Books of "A" (TDS Receivable)
Bank / Cash A/c Dr. 99,000/-
TDS Receivable A/c Dr. 1,000/-
To "B" A/c. 1,00,000/-

Entires in Books of "B" (TDS Payable)
"B" A/s Dr. 1,00,000/-
To Bank/Cash A/c. 99,000/-
To TDS Payable A/c. 1,000/-

Answer / h.r. sreepada bhagi

Example above is good. Note one correction : In the books of
Mr. B, Mr. A's A/c should be debited on payment. In the
entry since the parties' a/cs are debited/credited on
payment, it's implied that Rental Income / Expense has been
accounted earlier to payment. In that case TDS should also
have been accounted then. Following are the entries in teh
books of Mr.A :

On booking the income (TDS amount not @ 2% + Cess)
B's A/c Dr. Rs.99000/-
TDS Receivable/Advance IT A/c Dr. Rs. 1000/-
Rental Income A/c Cr. Rs.100000/-

On receipt of money from B :
Bank A/c Dr. Rs.99000/-
B's A/c Cr. Rs.99000/-

Answer / crazy fundas

A provides a Cab Service to B an Individual so he can
account this Revenue only when the service is provided
(Earned Revenue) otherwise any payment received is an
advance. So Supposedly the service is executed ofr 1 month.

In A's Books (he will recognise Revenue as follows)

B's Account Debit Rs.99000/- (Creation of Debtors for
receivable)
TDS A/c Debit Rs.1000/- (Create current Asset for TDS
Certificate receivable from Buyer)

To
Sales A/c Rs.100000/- (Sales)


In B's Books

when the service is provided and claimed for he will pass
entry as follows

At the time of Expense Booking (Accrual)
Rental Expenses A/c Dr Rs.100000/-
To A's A/c Cr. Rs.99000/-
To TDS Payable A/c Cr. 1000/-

At the time of making payment to A
A's Account Dr. 99000/-
To Cash/Bank A/c Cr. 99000/-

At the time of making TDS payments to Govt.
TDS Payable A/c Dr. 1000/-
To Bank A/c Cr. 1000/-


B gives TDS Certificate to A which A can adjust against his
Taxable Income in simplest terms.

Answer / victoriya

THE ABOVE ENTRIES ARE CORRECT IN FUTUR ACCOUNTS

Answer / gajanandw

Question :- Now once actual TDS certificates would be
received from "B" then "A" would Credit " TDS Receivable
A/C" in his books but which A/C would he debit? Will it be
"ADVANCE TAXES"

What is Sale in Transit Transaction and what are the forms issued and get form parties ?

2 Answers   Ernst Young, GTPL,

i have received bill from civil work contractor in that they charges Service tax & vat on same amount & .Please clarify

5 Answers  

I wanted to know about the taxes in haryana on Software Licenses ( Paper licenses). what is the % of service tax and VAT. and the both the taxes is charged on Base Amount or service tax is charged first and then VAT is calulated on the amount with Service TAX?

0 Answers  

wHEN SHOULD WE GET BACK TDS DEDEUCTED FROM OUR INCOME FROM THE INCOME TAX DEPT.?

2 Answers  

I am working as account in one of the logistics company for one year. I would like to know about service tax and how can I post necessary entries

0 Answers   Logistics,

And If my Income is 300000 p.a., so what tax I have to be deposit,explain with the method of tax calculation in detailed?

6 Answers  

I have deducted the tds against advace payment on 150000 ie 3000 paid to govt, in jan month in april month i rec 300000 bill so how to adjust the previous advance tds in this bill

2 Answers  

I HAVE PURCHASE MATERIAL IN 3% CST FROM U.P.AGAINST FORM 'C'. AFTERTHAT I WILL NOT GIVE FORM 'C' THAN HOW MANY RS. PAID TO PARTY.

8 Answers  

DO anyone need TDS(tds is tax deducted at sources ) Software?Saral TDS is the software for electronic filing of TDS and TCS returns as per the provisions of Income Tax Act. With thousands of customers throughout India, It has been the proven best eTDS Solution for the eReturns. Saral TDS has also been known for being used by several Nationalized Bank Branches, Such as Indian Bank, Union Bank Of India, State bank of India, SBM, SBH, Vijaya Bank, Karnataka Bank and So On.. contact reka_raj_pmc@yahoo.com

0 Answers  

what is TDS & CST ????????

2 Answers   PESPL,

Dear Sir, i am doing excise part, now I have a dout Please clarify any one. my question is I submitted July month return in before 10th August. But we sold material in july to x party excise value 12% - 1000, 2% - 20 and 1% - 10 Rupees respectively, we paid this amount in the same month it's no problem sir. but now x party reject the material and invoice in september month. may i adjuste above paid amount in september month return? How can i adjuste and where can i metione this details in Excise return? please give answer it's help full for me. Advance thanks for every one reply.

1 Answers  

how to finalaze the balence process using tally

0 Answers   CA,