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Accounting

Maan Singh (Assistant Manager Accounts) (79 Points)

17 June 2016

Dear Exprets,

Our parent company in USA and a subsidiary in India , we have received service invoice of Rs 30% form our Indian vendor in the name of USA Company with 15% service tax in $ and company pay 30% form USA in $ to Indian vendor a/c , now they raise to Invoice -1 . 30% of Invoice in USD in the name of USA Company and another is balance 70% invoice in the name of Indian company with 15% service tax (This 100% work was related to Indian company) , Now my request you to please suggest how to do accounting of this invoice in our Indian Books or need any revision in invoices.

How much Expense need to book in Indian Company.

Thanks & Regards

Maan Singh

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2 Replies

mohammad rasool baig (Management Consultant) (1026 Points)
Replied 17 June 2016

If the entire expenses are relating to indian subsidiary then invoice needs to be raised in the name of indian subsidiary only.

Any how payment was already made by the US parent company

Now you need to book only 70% of expenses & service tax on 70% in your books of accounts.

If you wanted to revise the invoices then

Book 100% expenses after obtaining 100% invoice from vendor in your books of accounts along with service tax (100%).

You need to pay (70%+ST) to vendor & (30%+ST) to US company - liability.

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Maan Singh (Assistant Manager Accounts) (79 Points)
Replied 17 June 2016

Sir,

it is the right way if vendor sent revise invoice of 100% in the name of Indian Co. and we book 100% in their ledger (30% payment alredy done form USA)

and pay 70% to Vendor and Credit 30% in USA ledger.