I am Purchasing Travel Insurance Policy from Reliance agent for Rs 100/- and collecting Rs 100/- from my Customer. Below is the details of how i am doing Invoicing in my Book of Accounts
But I am getting Rs 30/- as commission from Insurance company. so at the time of making payment i am paying cash of RS 70/- to my insurance Agent and deducting Rs 30/- from policy amount of RS 100/-.
Should i pass the below JV and pay service Tax .
Reliance Vendor A/c.....Dr 30/- To Insurance Commission A/c..... Cr 26.70/- To Service Tax A/c ..............Cr 3.30/-
Please check the above JV and let me know the correct way of doing the above transaction.
CAclubindia
