ACCOUNTING FOR TDS DEPOSITED ON REMITTANCE TO NON-RESIDENT

[S.C. WADHWA]

A Pvt. Ltd. company made payment to a company B in Mauritius

towards services rendered for incorporation of new company.

Payment made was 10000 USD i.e 600000 INR. We also

deposited tds to tune of ₹ 200000/-.

Please advise how it will be dealt with in our books as on 31/03/14.

Whether it will be shown as Amount recoverable to tune of ₹ 800000/-

or ₹ 600000/-.

If it will be shown as ₹ 600000/- how tds deposited by us will be booked

in our books.

AI Summary

Company Seeks Guidance on Accounting Treatment for TDS on Payment to Mauritius-Based Firm for Incorporation Services A private limited company inquired about the accounting treatment for tax deducted at source (TDS) on a payment of 10,000 USD (600,000 INR) made to a company in Mauritius for services related to the incorporation of a new company. The company also deposited 200,000 INR as TDS. The query sought advice on whether to record the amount as recoverable at 800,000 INR or 600,000 INR and how to account for the TDS in their books as of March 31, 2014. The response asked if the issue had been clarified, requesting further information if needed.