Need clarification about entries of s.tax.

This query is : Resolved

Guest

Guest (Querist)

15 December 2011 Hi All,

We have a Interior Designers Pvt Ltd. Co. in chennai. We do Interior Designers work for Corporate. We raise invoice/bill of huge amounts like 50lacs. when we raise invoice we charge S.Tax to our clients and when we received payments we received after deducting TDS. I want to know the proper entries of both the cases??

U S Sharma

U S Sharma (Expert)
Follow

15 December 2011 at the time of billing

sundry debtors a/c dr ......zzzzz
to service provided ...............xxxxx
to service tax .....................xxxx

at the time of payment of service tax
service tax a/c dr ........xxxx
to cash / bank a/c .............xxxx

at the time of TDS/Payment

cash / bank a/c dr ..........xxxxx
Income tax (TDS) a/c dr ......xxxx
to Sundry debtors .................xxxxx

Incometax / TDS is to be set off with incometax liability of service provider after the finalization of accounts for respective AY

Guest

Guest (Querist)

15 December 2011 Thanks for clarification...

Upgrade to CAclubindia Pro. Subscribe Now!