In balance sheet, where do you show TDS?

Asked 15-Nov-2017
Viewed 255 times

1

In balance sheet, where do you show TDS?


1 Answer


0

It can be shown on both sides of the Balance sheet which is asset or liability
Asset Side
When TDS (tax deducted source) deducted by another person (payer) when paying to you (payee), it will be shown on the Assets side of the Balance Sheet. At the time of tax assessment, it would be transferred either to the Income Tax provision account or Refund Receivable Account as the case may be.

Liabilities Side
When you are the payer and the other person is the payee, then after deduction, you are legally bound to pay the deducted amount to the Government. In that case, then it will be shown under Liabilities side till you pay the same.


Loading...
Ads