Wednesday, August 6, 2014

Answer for 58 edition.



Is TDS Asset or Liability ?

The Best Answer:

TDS receivable is an asset and TDS payable is Liability

TDS is a Liability as we are in obligation to pay the deducted amount against the payment or expense booking made against Vendor, etc, to government as per the due dates given. TDS payable appears as a Current Liability in  the Balance sheet.

TDS is treated as Asset when the reverse happens and our payments are deducted with TDS by the party paying us. TDS receivable appears as Current Asset in the Balance sheet.

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