Tds & service tax

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Anand yadav (Querist)
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01 January 2015 If we will receipt bill for professional fees,how the journal entry will pass(with included TDS & SERVICE TAX)
for eg. if professional fees is RS.500000.

CA. Anoop Bhatia

CA. Anoop Bhatia (Expert)
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01 January 2015 I think entry could be passed like this:

Bank A/c Dr.
Tax Deducted at Source Dr.
Service Tax Receivable/Paid/Credit Dr.

To Professional Fees.

If you are entitled for cenvat credit of service tax you can knock off the credit for future service tax due or otherwise it can be knocked off against the P&L a/c.