Interested to Buy Any Domain ? << Click Here >> for more details...
Answer Posted / 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.
| Is This Answer Correct ? | 17 Yes | 1 No |
Post New Answer View All Answers
Tell me what would you say are the most important qualities of an account manager?
how to assign the cost center to GL Account in SAP (FICO)
What is meaning of invoice?
How many accounting standards are currently published?
Tell me do you possess any knowledge about accounting standards?
iv, A non -performing asset is A, Money at call and short notices b, An asset that ceases to generate income c, cash balance in till d, none of the above
swagat staryed business on 1st jan 2005 with cash on hand Rs. 10000
Cash Processing
What is the difference in accounting and marketing and what is so different about them?
Can a company deduct TDS & provide TDS certificate for a bill without actually making payment towards the same??
Mention the types of ledgers?
What is an interlocking accounting system?
Imagine you have to solve problems for multiple clients at the same time. How do you prioritize?
Define social responsibility accounting
Have you ever made mis reports and what are they?
