Tuuion fee

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

22 December 2014 Dear Sir ,

We have received Cheque from One Charitable Trust against the admission of Tution Fee . They paid the amount in Cheque . We provide the 4 Students admission against the Cheque Amount . They Deduct 10% TDS Amount while paying the Tution Fee Cheque.Service Tax 12.36% applicable for this Transaction.

The Details as Under
Total Tution Fee Amount Rs.1,89,000.00
Actual Cheque Amount Rec. Rs.1,70,100.00
TDS 10% Rs.18,900.00

Kindly explain me the Entry may I have to Pass in Tally which cover this Whole Transaction.

Amol S Joglekar

Amol S Joglekar (Expert)
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22 December 2014 01 Debit Student's A/c 189000
Credit Tuition Fee 189000
02. Debit Bank A/c 170100
Debit IT TDS 18900
Credit Student's A/c 189000
03. When ever you pay service tax
Debit Service Tax xxxxxxx
Credit Bank A/c
(Note Service tax is your expenses, in above example)

Querist : Anonymous

Querist : Anonymous (Querist)

22 December 2014 Under Which group I have to entry the Student Account?

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Amol S Joglekar

Amol S Joglekar (Expert)
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22 December 2014 Trade Receivable......i.e. Sundry Debtors.

Querist : Anonymous

Querist : Anonymous (Querist)

22 December 2014 I pass entry as -Trust A/C Under Group Name-

Amol S Joglekar

Amol S Joglekar (Expert)
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22 December 2014 I think you should be more concerned about your students rather than where from the money has come. Are you providing service to Students OR Trust?
If you are duty bound to provide service to Trust then what you have done is correct.
But if you are duty bound to students, then change the TRUST a/c to Student's Account.

Querist : Anonymous

Querist : Anonymous (Querist)

22 December 2014 At the time of Receipt Entry we receipt the Service Tax Amount because when we received Tution Fee that Amount Inclusive of Service Tax Amount .

Entry As under - Tution Fee - 1,12,000.00

so Entry As Tution Fee Dr.99680.00
Bank A/c Dr. Rs.112000.00
Service Tax Cr. 12320.00

while paying Service Tax We Dr. 12320.00
TO Bank A/C Cr. - 12320.00

Querist : Anonymous

Querist : Anonymous (Querist)

22 December 2014 We are providing Service to Students not to the Trust - The Trust just paid the Tution fee amount on Behalf of Students. That's It. The Role of Trust Finish after paying Tution Fee.

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Querist : Anonymous

Querist : Anonymous (Querist)

22 December 2014 I pass Two Entries as under;
Journal Entry

1)Trust A/c Dr. Rs.1,68,210.00
Tution Fee A/c Cr. 1,89,000.00
Service Tax A/c Dr.20790.00

2) Bank Receipt Entry

Trust a/c Cr. 168210.00
Bank A/c De. 170100.00
TDS A.Y.2015-16Dr. 18900.00
Service Tax A/c Cr.20790.00

*TDS A.Y.2015-16 Group under Loans & Advance(Assets)*

Kindly explain is it CORRECT????

Amol S Joglekar

Amol S Joglekar (Expert)
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22 December 2014 In place of trust account, it should be the concerned Student's acounts....X, Y Z etc.

CA Kumar Mukesh

CA Kumar Mukesh (Expert)
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22 December 2014 The Required any will be as under

1. for booking of Income

Trust A/c Dr. 1,89,000
To Professional/fees receipt a/c 1,68,209
to Service tax payable a/c 20791
(being fees is accrued since fees receipt include Service tax and service tax portion is calculated as per provision of section 67(2) of chapter V of finance act 1994)

2. on the receipt of fees

Bank A/c Dr 170100/-
TDS Received Dr 18900/-
to Trust A/c 1,89,000/-
(being payment received)

The above treatment is in line with section 67(2) of the Finance Act 1994

CA Kumar Mukesh

CA Kumar Mukesh (Expert)
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22 December 2014 The Required any will be as under

1. for booking of Income

Trust A/c Dr. 1,90,000
To Professional/fees receipt a/c 1,68,209
to Service tax payable a/c 20,791

(being fees is accrued since fees receipt include Service tax and service tax portion is calculated as per provision of section 67(2) of chapter V of finance act 1994)

2. on the receipt of fees

Bank A/c Dr 1,70,100/-
TDS Received Dr 1,8900/-
to Trust A/c 1,89,000/-
(being payment received)

The above treatment is in line with section 67(2) of the Finance Act 1994

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Amol S Joglekar

Amol S Joglekar (Expert)
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23 December 2014 Kumar.....the question NOW is whether TRUST a/c shpould be opened OR STUDENT's accounts?
Your views please.

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Querist : Anonymous

Querist : Anonymous (Querist)

23 December 2014 Dear Sir ,

As mentioned by Mr.Mukesh Kumar I had passed the entries in my Books of Account .

Also Thanks for Mr.Amol Joglekar for the same .

CA Kumar Mukesh

CA Kumar Mukesh (Expert)
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23 December 2014 IF THE PAYMENTS COMES IN THE FORM OF BANK TRANSFER OR BANK Instruments or have a TDS implications, In that cases it is better to have party ledger.

Therefore, Income first need to accrued by party ledger then bank need to be debited by credited by party ledger

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