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Former Member
Jun 21, 2016 at 10:30 AM

TDS calculation on basic expense amount


Hello Experts,

I am unable to calculate TDS amount on basic expense amount. As currently its getting calculated on Gross Amount of the invoice which inclusive of service tax. So anybody please let me know how to calculate TDS amount on basic expense amount which is exclusive of service tax?

Here for example I will calculate TDS for Rent @10% on Rent Expense Amount of INR 10,000.

Rent expense amount INR 10,000

Service Tax amount @15% INR 1,500


Total Invoice amount INR 11,500


TDS will be calculated on INR 10,000 i.e. INR 1,000

So my final Journal Entry will be:

Rent Expense A/c ---Dr INR 10,000

Service Tax A/c -------Dr INR 1,500

To Vendor A/c INR 10,500

To TDS on Rent A/c INR 1,000

Thanks & Regards,