Question { 11040 }

Hi all,
I recently joint a pvt ltd firm which offered me gross
10000 salary Per month and 10.3%tds deduction on it. my net
salary will be 9000. My question is my salary is not
taxable then how they can deduct my tds? according to firm
tds return will get me back after 1 years ? I am totaly
confused with this pls guide me on this matter.

Thanks in advance

Answer

I am fully agree with Suresh. Where you have joined they
have treated you as a consultant and giving you
professional fees and deducting TDS as per rules.They will
give you FORM 16A insteed of FORM 16 (Salaried staff)

Question { Genpact, 30294 }

What is the journal entry for paying 50000 rs. To xyz co.
For professional fees after deducting tds on that.

Answer

professional fees A/C Dr. 50000/-
to XYZ Co 50000/-

XYZ A/C Dr. 5000/-
to TDS of P. Fees 5000/-

XYZ Co A/c Dr. 45000/-
to CASH/ BANK 45000/-