Service tax entry

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

27 May 2015 what entry to be done .....

we are a educational company and received a invoice from a company like this

service charges ===100000/-

service tax ===12360/-

total amount 1,12,360/-

We take service tax credit than what entry we have to put and tally and what amount we pay to party ////

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
Follow

27 May 2015 1) Considering TDS not applicable...

Service Charges(Expense Head) Dr Rs 100000
Service Tax Input Credit A/c Dr Rs 12360
To Party A/c... Rs 112360

2) Considering TDS applicable 10%...

Service Charges(Expense Head) Dr Rs 100000
Service Tax Input Credit A/c Dr Rs 12360
To TDS Payable A/c Rs 10000
To Party A/c... Rs 102360

(Remember TDS is not deducted on Service Tax Amount)

At the time of payment...

Party A/c Dr
T Bank A/c...

TDS Payable A/c Dr...
To Bank A/c...