14 April 2010
i am working in corporate, one of our branch has collected service tax through their invoicing, how to pass entry in corporate booke (whether we need to pass monthly or annualy)
14 April 2010
Query is not so much clear. But for service tax compliance, you have to make the service tax to the credit of central government once you receive amount of service tax from the customer.
15 April 2010
If you are maintaing centralised system of accounting and the payment collected by the Branch remitted to HO. you need to debit bank and credit branch .since the query is not full.you can explain the details full
Querist :
Anonymous
Querist :
Anonymous
(Querist)
15 April 2010
Hi Ramesh
I am working in corporate basically our's is service oriented company, we are doing centralised billing for retainer rest and all (for operation jobs) invoices are done at branch level, for some of the invoice they are collecting service tax, this is our story , now can you advice how to pass the entries in corp
16 April 2010
Since your are having centralized billing under service tax, the collected service tax by branch has to be remitted you the Corporate and Service tax payable ledger also need to be kept centrally at Corporate the entry will be Entries In Branch books For charging service tax by Branch Dr: Debtors Cr: Sales Cr: Service tax payable
For transferring service tax to Corporate
Dr: Service tax payable Cr: Corporate HO A/c
For collecting money
Dr: Cash/Bank Cr: Debtors
For collected money transfer to Corporate HO
Dr: Corporate HO A/c Cr: Cash/Bank
Entries In HO books For charging service tax by Branch No entry required
For transferring service tax to Corporate
Dr: Respective Branch A/c Cr: Service tax payable A/c
For collecting money from Branch
Dr: Cash/Bank Cr: Respective Branch A/c
Payment of Service Tax
Dr: Service tax payable Cr: Cash/Bank
Querist :
Anonymous
Querist :
Anonymous
(Querist)
16 April 2010
Thank you very much Ramesh Sir!
Regards Sridhar
Querist :
Anonymous
Querist :
Anonymous
(Querist)
27 April 2010
Hi
ours is basically service oriented company, we have under taken some sales promotional activites on contract basis, during fy 09-10 work was finished up to 65% can we stright away raise the invocie for that portion or we need to pass provision for that.