Warehouse rent

This query is : Resolved

srinivasan (Querist)
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11 October 2010 Dear all

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.

any doubt revert me

Dhaivat Trivedi

Dhaivat Trivedi (Expert)
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11 October 2010 warehouse rent Dr
Service tax Dr
To TDS Payable
To Bank

revert

CA CS CMA Srinivasan N

CA CS CMA Srinivasan N (Expert)
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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

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