Dear Friends,
After circular 1 of 2014 dt 13.01.2014 service vendor charging service tax in his bill is excluded for deducting TDS. The entry before circular is:- Consultancy Exp Debit 112360 (Base price 100000 + Serv Tax 12.36% 12360)
Vendor A/c Credit 101124
TDS u/s 194J Credit 11236
But now since tds is to be deducted on base price ie on Rs100000/- TDS is 10 on it ie Rs.10000
What would be the correct entry:-
1. Consutancy Exp Debit 1000000
Service Tax Exp Debit 12360
TDS Liab Credit 10000
Vendor A/c Credit 102360
2. Consultancy Exp Debit 112360
TDS Liab Credit 10000
Vendor A/c Credit 102360
Pl advise as users using SAP accounting package entry no-1 is possible .
Please advise..
Regards,
Alok