Dear Friends we have a branch account and have received some work (forms processing) which had to be done by them but we did the processing, but as the DD was recd in their name they deposited the DD in their name and we need to collect the amount from them,, .. This income has service tax constraint.
So i plan to make entry as follows: CREDIT NOTE ENTRY
Form processing fees (current asset group) ac Dr..... 10000
Branch Account (Branch accounts group) ac Cr----- 10000
BANK RECEIPT ENTRY
after receiving the payment from the branch booking will be done as
form processing (income group) ac ---- Cr - 9000
service tax (dont bother the % its example) Cr - 1000
Branch Account (branch account head) Cr -- 10000
Form processing fees (current asset group) ac Dr - 10000
Bank Account (Savings Bank Ac) ac Dr - 10000
kindly advise if the above entry is correct or not ...
REgards,
Ravi.
CAclubindia
