Pls tell me how to make the accounting entry for paying warehouse rent when received rent bill, give me the full accounting entry for booking rent bill,paying warehousing rent,deducting tds, paying service tax and booing service tax for rent ie.Concept is we hired the warehouse,the rent is Rs.65880/- pls explain in this whole transaction.
12 October 2010
Warehouse Rent is in the nature of Storage Costs and the rental payments attract TDS u/s 194I. The rate of TDS @ 10% without including Service Tax. Assuming the amount given by you as Rent includes Service tax, the rent amount is 59,728, Service Tax 6,152 TDS Applicable - 5,973, Net Payment - 59,907.
The Accounting Entry will be : 1) Warehouse Rent A/c Dr. 59,728 Service Tax Recoverable A/c Dr. 6,152 To Warehouse Owner A/c Cr. 59,907 To TDS on Rent A/c Cr. 5,973 2) Warehouse Owner A/c Dr. 59,907 To Bank A/c Cr. 59,907
CAclubindia
