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what is vat receivable

what is the treatment of TDS receivable & TDS payable

Dear, sir\Madam i would like to know that how will i record a transaction where i received Rs.900 after deducting Rs.100 Tds from a debtor.(journal entry. how will i adjust Tds? in the same manner what will be the journal entry, if i pay Rs.900 after deducting Tds? Is it the case that the net of TDS receivable and payable will be paid to Govt. Thanks in advance

by CMA. CS. Sanjay Gupta on 11 June 2010

NO TDS RECEIVABLE AND TDS PAYABLE CAN NOT BE SET OFF. TDS RECEIVABLE IS INCOME TAX PAID BY YOU ON YOUR INCOME AND TDS PAYABLE IS PAID BY YOU AFTER DEDUCTING THE SAME FROM DEDUCTEE. SO YOU ARE JUST DEDUCTING AND DEPOSITING. ENTRY: CASH/ BANK DR. 900 TDS RECEIVABLE 100 TO DEBTORS 1000

by CA Ravi Kumar Murugesh on 11 June 2010

For the receipt of Rs.900 after deducting

Rs.100 TDS: Bank A/c Dr Rs.900 TDS Receivable A/c(Current Asset) Dr Rs.100 Debtors A/c Cr Rs.1000 For the payment of Rs.900 after deducting Rs.100 to creditor: Creditor A/c Dr Rs.1000 TDS payable A/c(Curr.liab) Cr 100 Bank A/c Cr Rs.900 When you pay TDS of above to the govt: TDS payable a/c Dr.Rs.100 Bank A/c Cr Rs.100 When you receive TDS refund in first case: Bank A/c Dr.Rs.100 TDS Receivable A/c Cr Rs.100 If you adjsuted against your tax liability: Income Tax Exp A/c Dr.100 TDS Receivablke A/c Cr Rs.100

by CA. BIJENDER KR. BANSAL on 11 June 2010

AGREED WITH EXPERTS. TDS RECEIVABLE IS THAT AMOUNT WHICH YOU WILL CLAIM IN HIS INCOME TAX RETURN. WHILE TDS PAYABLE IS YOUR LIABILTIY WHICH YOU HAVE PAID.

by CA.TAPAS DALAR on 11 June 2010

100% agreeing with CA. Ravi kumar

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Category: Bank

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