Entry for service tax and tds on consultancy fees
This query is : Resolved
15 May 2013
Would like to have an opinion on the following transaction.
lets say company A receives a consultancy services and the invoice for the same is as follows:
Consultancy services 100000
Service tax @12.36% ( rounding off for convenience) to 12000
tds on 112000@ 11.33% rounding off to 13000
So what would be entries in books of A
as per my opinion it should be as follows in books of A
1)first entry:
Consultancy fees Dr. 100000 -
ServiceTax payable A/c Dr. 12000 -
Tds A/c Dr. 13000 -
To A A/c Cr - 112000
To Tds payable A/c Cr - 13000
2) second entry:
Tds payable A/c Dr. 13000 -
To Bank A/c Cr. - 13000
3) Third entry :
A A/c Dr. 112000 -
To Tds A/c Cr. - 13000
To BankA/c Cr. - 99000
lets say company A receives a consultancy services and the invoice for the same is as follows:
Consultancy services 100000
Service tax @12.36% ( rounding off for convenience) to 12000
tds on 112000@ 11.33% rounding off to 13000
So what would be entries in books of A
as per my opinion it should be as follows in books of A
1)first entry:
Consultancy fees Dr. 100000 -
ServiceTax payable A/c Dr. 12000 -
Tds A/c Dr. 13000 -
To A A/c Cr - 112000
To Tds payable A/c Cr - 13000
2) second entry:
Tds payable A/c Dr. 13000 -
To Bank A/c Cr. - 13000
3) Third entry :
A A/c Dr. 112000 -
To Tds A/c Cr. - 13000
To BankA/c Cr. - 99000
15 May 2013
Dear Pankti,
According to me, the following entries should come:
1. consultancy fees Dr. 1,00,000
Service Tax Credit Dr 12,000
To A A/c 1,12,000
2. A A/c Dr 1,12,000
To Bank 99,000
To TDS A/c 13,000
3. TDS A/c Dr 13,000
To Bank A/c 13,000
Now, the Service Tax Credit a/c in the first entry can be used for adjusting the ST payment required to be made by the company to the Govt.
the following entry will come:
service tax payable Dr XXX
to Service Tax Credit XXX
- Ankit
According to me, the following entries should come:
1. consultancy fees Dr. 1,00,000
Service Tax Credit Dr 12,000
To A A/c 1,12,000
2. A A/c Dr 1,12,000
To Bank 99,000
To TDS A/c 13,000
3. TDS A/c Dr 13,000
To Bank A/c 13,000
Now, the Service Tax Credit a/c in the first entry can be used for adjusting the ST payment required to be made by the company to the Govt.
the following entry will come:
service tax payable Dr XXX
to Service Tax Credit XXX
- Ankit
15 May 2013
Thanks a lot Ankit for your immediate response
Regards,
Pankti
Regards,
Pankti
15 May 2013
you are welcome...if you have any more doubts..feel free to ask
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is this income indian or foreign income?
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- ITC temporary reversal and reclaim
- GST on export of services and Input Credit
- Inventory of finished goods
- Applicable TDS rate for sale of property in Nov 2024
- Tds on building rent monthly
- REGARDING 25 AS DATE OF PAYMENT AND DATE OF BOOKING
- Quiery in relation to GST liability in case of an advocate who has obtained GST registration.
- Can we claim ITC of Feb-2024 in the month of November-2024 which was not claimed by oversight
- Disallowance of Section 43B(h) to sez units
- Regarding Waiver of Interest levied u/s 50 of PGST/CGST Act
- LAST YEAR 2022-23 ITC IN NEXT YEAR 2023-24 REPORITNG IN GSTR-9
- MIS MATCH OF INVOICE NUMBER
- IGST Credit-Show cause notice issued-confusion
- Issue of gst e invoice
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
- Query for dubts
Trending Online Classes
CAclubindia
