Professional service

This query is : Resolved

Nasir ahmed (Querist)
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15 January 2015 If professional service charge Rs 50000 and service tax 12.36% plus Tds how will I pass journal entry and payment entry plus 50% payment in cash and 50% in cheque?

CA Devanand Jethanandani

CA Devanand Jethanandani (Expert)
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15 January 2015 Fees 50000
ST 6180
total 56180
TDS @ 10% 5000 (on basic value)

Entry,

Professional fees Dr.50000
service tax receivable 6180
to party Cr.51180
to tds payable Cr.5000

If service tax credit is not to be taken then debit professional fees with Rs.56180

Entries when 50% payment made in cash and 50% through cheque,

Party Dr.25590
to bank Cr.25590

Party Dr.25590
to cash cr. 25590