Sandeep (Self Employed) (125 Points)
20 September 2012Looking for help on how to book the following transaction in Tally when invoice for services is raised in March and payment is received in April.
1. Services billed in March 2012
2. How to make provision for TDS to be deducted for the receipt in March?
3. While making provision how to avoid service tax liability accruing in March on the provision?
4. How to account for final payment received in April?
Please povide detailed accounting antries with ledgers/groups.
Thanks & regards
Sandeep
Giridhar S Karandikar
(Team Lead)
(7548 Points)
Replied 20 September 2012
Where the services are rendered in the month of March i.e. during the current F.Y. but payment is received in subsequent months i.e in the enxt F.Y. then in the month of March the entry for booking the Service Receipts & TDS will be as follows:
Customer A/c Dr
TDS Receivable Dr
To- Invomce(with the account ehad for services rendered)
In the subsequent F.Y. when payment si received the entry would be as follows:
Bank A/C Dr
to Customer A/c
For TDs receivable A/C in case of individual, teh same would transferred to capital A/c. In other cases the same would be adjusted against the Provisino for Taxation.
Sandeep
(Self Employed)
(125 Points)
Replied 20 September 2012
Thanks Giridhar,
This doesn't account for service tax entries in current FY. Also when payment is received then how to account for TDS Receivable?
Regards
Sandeep
Giridhar S Karandikar
(Team Lead)
(7548 Points)
Replied 20 September 2012
You have to adjust the TDS receivabel against the Provision for TAxation created in the previous year, or if no provison for taxatino account is tehre then tranfer the balance to Capital Account by Debiting Capital A/c of teh Proprietor & Crediting TDS REceivable
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 20 September 2012
in march
party a/c dr
to service billed
----------------------
TDS a/c dr ( or income tax advance a/c , in case of proprietorship)
to Party a/c
-------------------------
in april
cash/bank a/c dr
to party a/c
-----------------------------------------------------------
after making the TDS entry the party a/c ( receivable) will get reduced with the amount of TDS so deducted.
Sandeep
(Self Employed)
(125 Points)
Replied 20 September 2012
Only part of the problem solvd by above solutions, please see following issues -
1. Sales invoice is generated as follows-
Cr Party a/c
Dr Income a/c
Dr. Service tax a/c
2. TDS Receivable is accounted as follows -
Dr TDS Receivable
Cr Party a/c
3. Proprietor a/c Dr as follows on 31st March
Dr Proprietors a/c
Cr TDS Receivable
4. On receipt of payment
Cr Party a/c (amount after reducing the TDS Receivable)
Dr Bank a/c (amount received after TDS deduction)
However since the final payment is not reflecting the TDS Receivable therefore the Service Tax liability on the TDS Receivable ledger is not reflecting properly and therefore these is a shortage in Service Tax payable in Tally.
How to account for the same?
Regards
Sandeep
Jairam J
(CA, B.COM(Hons.))
(382 Points)
Replied 20 September 2012
1) Income(Rs.10000) from Party X recognition where tds is attracted on March assuming 194c
X A/c ......Dr 11030
To Income A/c 10000
To Service Tax 1030
2) Tds @ 2% of 11030
TDS Receivable A/c 221
To X A/c 221
ASSETS =11030
Sundry Debtor
X = 11030-221= 10809
Advances & Deposits
TDS Receivable =221
LIABILITIES=11030
Profit & Loss A/c =10000
Provisions
Service Tax @ 10.3% =1030
3) Next FY -
Say April when amount is recd net of TDS
Bank A/c...Dr 10809
To X A/c 10809
4). TDS adjusted to Income Tax Payable or Provision for Tax
Provision for Tax A/c Dr.. 221
To TDS Receivable A/c 221
5). Service Tax payment by 6th of following month in which payments are receievd ( 6th May since payment recieved in April)
Service Tax A/c ...Dr 1030
To Bank A/c 1030
In the last entry I am unsure if tds component of service tax i.e 1030 x 2% = Rs. 21 will be discounted and we pay only Rs.1009 or we pay Rs.1030...
Venkat
(Dy. Manager Finance)
(272 Points)
Replied 21 September 2012
in the above example given by Mr.Jairam.... Service tax has to payed = Rs.1030.00..
as Total amount billed to customer = Rs.11030.00 on that TDS = 2% - 221.00 aganin 2nd time tds will not be applicable on service tax portion which is already covered in 221 it self.
Hats off to Jairam ... for his explanation which is very nice and gr8....
deepak
(assistant accountant)
(26 Points)
Replied 14 April 2017
Only part of the problem solvd by above solutions, please see following issues
- 1. Sales invoice is generated as follows-
Cr Party a/c
Dr Income a/c
Dr. Service tax a/c
WHEN ENTRY POST IN FIRM BOOK YA ANOTHER PERSON SERVICEPROVIDER
deepak
(assistant accountant)
(26 Points)
Replied 14 April 2017
| Originally posted by : Jairam J | ||
 |
1) Income(Rs.10000) from Party X recognition where tds is attracted on March assuming 194c X A/c ......Dr 11030 To Income A/c 10000 To Service Tax 1030 2) Tds @ 2% of 11030 TDS Receivable A/c 221 To X A/c 221 ASSETS =11030 Sundry Debtor X = 11030-221= 10809 Advances & Deposits TDS Receivable =221 LIABILITIES=11030 Profit & Loss A/c =10000 Provisions Service Tax @ 10.3% =1030 3) Next FY - Say April when amount is recd net of TDS Bank A/c...Dr 10809 To X A/c 10809 4). TDS adjusted to Income Tax Payable or Provision for Tax Provision for Tax A/c Dr.. 221 To TDS Receivable A/c 221 5). Service Tax payment by 6th of following month in which payments are receievd ( 6th May since payment recieved in April) Service Tax A/c ...Dr 1030 To Bank A/c 1030 In the last entry I am unsure if tds component of service tax i.e 1030 x 2% = Rs. 21 will be discounted and we pay only Rs.1009 or we pay Rs.1030... |
 |
ABOVE QUESTION FIRST ENTRY AND THAT SUM QUESTION FIRST ENTRY DID NOT MATCH I THINK BUT I AM NOT CORRECT
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