Work contract service

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suneel

suneel (Querist)
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10 June 2015 dear sir
i would like know some entries of service tax to maintain a account.....................

CMA MALHAR BEHERA

CMA MALHAR BEHERA (Expert)
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10 June 2015 Accounting Entries :
For example, the service recipient should pay 40% to the service provider and should pay remaining 60% to the service tax authorities directly.

1.Entry in the books of Service Provider:-

Service Receiver a/c .....Dr.

To Sales A/c

To Service tax payable(40%) A/c

2.Entry in the books of Service Receiver:-

Service Received a/c Dr

Service Tax Credit(40%) Dr

E-Cess Credit a/c Dr

SHEC Credit a/c Dr

Service tax recoverable a/c(60%) Dr

E-Cess Recoverable a/c Dr

SHEC Recoverable a/c Dr

To Service Provider a/c

To Service Tax Payable(60%)

To E-Cess Payable

To SHEC payable