Partial reverse charge

This query is : Resolved

CA Mukul Jain (Querist)
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06 May 2013 We(Co.) are paying 10000 p.m as security guard charges to a firm..
our ST liablity is 75%
their ST liability is 25%

how should we account it??

Please help.

Thanks.

PUNEET GOYAL

PUNEET GOYAL (Expert)
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07 May 2013 Security Charges Dr.10000
Input ST, EC & SHEC Dr. 309
Input ST, EC & SHEC (68(2)Dr. 927

To Sundry Creditors Cr. 10197
To TDS Cr. 112
To ST, EC & SHEC Payable (68(2))Cr. 927

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CA Mukul Jain

CA Mukul Jain (Querist)
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08 May 2013 When should I take credit of 927???
suppose security charges is for April, we paid them on 2 May and we have output ST of 1000
How much does we require to pay on 5/6th May???
does we require to pay 927 on 5/6th June and take credit thereafter..

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PUNEET GOYAL

PUNEET GOYAL (Expert)
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08 May 2013 Its credit can be taken only after its payment in Govt. Account. So first deposit it and only thereafter you can take its credit.