Answer / asok saha

1.Purchase A/c --Dr.
Party A/c------Cr.


2.PartyA/c------ Dr.
TDS PayableA/c-- Cr.
Cash/Bank A/c----Cr.

3.TDS PayableA/c----Dr.
Cash/Bank A/c-----Cr.

Answer / hamsa

Usually TDS needs to be deducted on services provided and not on the purchases. So, that should be debited to the Expenditure account (i.e Professional Fee, Construction Fee, Salary etc..)

Journal Entry will be:

Expense Account Dr
TDS Payable Account CR
Party Account CR.

While making the payment

Party Account Dr
Cash or Bank Account.

It's better to deduct the TDS while entering the bill instead of deducting at the time of payment to party, becoz there is chance of missing the deduction. As per 40a of the Act, we need to deduct TDS at the time of expense or payment which ever is earlier.

Usually, the booking the expenditure will take place earlier than the payment.. of course in exceptional cases we pay as advance.

Answer / amjad

suppose you hire a vechile for transportation of xyz. road
ways for which you pay Rs 20000 as freight

this transportation exp is liable for tds and the entries
will be

1) Transportation A/c dr 20000
To,tdx A/c 200 @ 1%
To,xyz. A/C 18800

2) Tds A/c dr 200
To,Tds payable 200

When making paymene

Tds payable A/c dr 200
To, Bank/Cash

Answer / vishalgoel88@yahoo.com

Expenses a/c dr.....
To Creditors a/c .....

Creditors a/c dr....
To TDS Payable a/c......

Answer / v.sreenivasulu

TDS PAYABLE IS A IS A KNOWN LIABILITY.
THE JOURNAL ENTRY FOR THIS IS AS FOLLOWS.

PROFIT & LOSS A/C ................DR
TO INCOME TAX PAYABLE A/C

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