Tds on consultation services
This query is : Resolved
17 May 2013
Hey All,
This query relates to hiring of a professional as a consultant by a firm or a company.
Suppose the amount paid as retainership payment is Rs 20000 p.m.
What would be the tds provisions attracted and the journal entry for the same in the books of the Employer or the person receiving the consultancy services.
Is there an service tax liability on the part of the payer or receiver.
Regards
Punit
This query relates to hiring of a professional as a consultant by a firm or a company.
Suppose the amount paid as retainership payment is Rs 20000 p.m.
What would be the tds provisions attracted and the journal entry for the same in the books of the Employer or the person receiving the consultancy services.
Is there an service tax liability on the part of the payer or receiver.
Regards
Punit
17 May 2013
TDS u/s 194J @10%(on the amount inclusive of service tax)...and Service tax liability of service provider only on whole amount @12.36%(assuming he is not covered under SSI)
In the books of the service provider
Monthly entries:
Party A/c Dr. 20,225
TDS Receivable A/c Dr. 2,247
To consultancy income A/c 20,000
To Service tax payable A/c 2,472
In the books of the service receiver
Professional Chgs A/c Dr. 20,000
Service tax expense(or CENVAT A/c) Dr.2,472
To Vendor A/C 20,225
To TDS Payable A/c 2,247
In the books of the service provider
Monthly entries:
Party A/c Dr. 20,225
TDS Receivable A/c Dr. 2,247
To consultancy income A/c 20,000
To Service tax payable A/c 2,472
In the books of the service receiver
Professional Chgs A/c Dr. 20,000
Service tax expense(or CENVAT A/c) Dr.2,472
To Vendor A/C 20,225
To TDS Payable A/c 2,247
Message likes :
1 times
17 May 2013
Thanks Sumit...
Regards
Punit
Regards
Punit
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- REGARDING GST ON COMMERICIAL PROPERTY
- Is this income indian or foreign income?
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- ITC temporary reversal and reclaim
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- GST on export of services and Input Credit
- TDS U/S. 194NF
- Applicable TDS rate for sale of property in Nov 2024
- RCM INVOICING FROM NOV-2024
- IGST Credit-Show cause notice issued-confusion
- Issue of gst e invoice
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
- Query for dubts
- Regarding einvoice taken on nil rated sales
- Strategical investment in Public listed company
- CASE INTIMATION OF LIABILITY UNDER SECTION 73(5)(Rule 142(1A)
- Need to correct "Whether it is last installment " response in Form 26 QB
Trending Online Classes
CAclubindia
