praveen kaushik (assistant accounts) (38 Points)
11 February 2012hi,, i have a query, users please try to solve,
if someone raised a bill to my compnay (Rs. 5000+Service Tax 515). What should be the correct entry for expense book and what entry should i pass when i will pay the bill it should be with the TDS adjustment.
Devendra
(Chartered Accountant)
(4775 Points)
Replied 11 February 2012
Dear Praveen,
Please pass the following entry
Expense A/c Dr. 5000
Input Service Tax A/c Dr. 515
To Sundry Creditor A/c
(Being bill booked)
Sundry Creditor A/c Dr. 5515
To Cash / Bank A/c 5515
(Being Bill paid)
Regards,
Devendra Kulkarni
praveen kaushik
(assistant accounts)
(38 Points)
Replied 11 February 2012
Dear Devendra,
Thank for your valuable reply, but please clearify the TDS entry in the above mentioned case,, TDS (Professional) which is to be deducted, when i will paid the funds to settelment.
CA. ANKUR JAIN
(CA.....)
(2800 Points)
Replied 12 February 2012
Expense a/c Dr. 5000
Input service tax Dr. 515
To sundry creditor a/c 4963
To TDS(Prof) Payable a/c 552
(being bill booked)
sundry creditor a/c Dr. 4963
Tds payable a/c Dr. 552
To Cash/bank 5515
(being paymnt mae to creditor and tds deposited)
praveen kaushik
(assistant accounts)
(38 Points)
Replied 12 February 2012
Thanx for the reply CA Ankur Jain,, suppose i deposite collective Tax (TDS-Professional) only once in a month i.e. 6th of every month, not bill wise, so can just made a entry to Dedit the Sundry Creditor and credit my bank acoount by the actual payable amout which should be after TDS. and make a single entry for all my TDS (professional), can u show that entry also...
CA. ANKUR JAIN
(CA.....)
(2800 Points)
Replied 12 February 2012
Yes Yes offcourse you can make a single entry to square up the tds payable account
Vedant Agarwal
(Chartered Accountant)
(46 Points)
Replied 12 February 2012
(1) For Expense:-
(a) If your Company is liable to pay Excise Duty or Service Tax :-
Expense A/c Dr. 5000/-
Service Tax Input A/c Dr. 515/-
To Sundry Creditor A/c 5515/-
(b) If your company is not liable to pay Service Tax or Excise Duty :-
Expense A/c--- Dr. 5515/-
To Sundry Creditor 5515/-
(2) For Payment:-
Sundry Creditor A/c Dr. 5515/-
To TDS Payable 552/-
To Cash 4963/-
(3) Now pay TDS:-
TDS Payble A/c Dr. 552/-
To. Cash 552/-
Vijayalakshmi.K
(ICWA Final )
(324 Points)
Replied 13 February 2012
Journal entry for TDS:
Party a/c Dr (Since it is recoverable from party we are debiting)
To TDS a/c (Since its our liablity to remit tds to govt we are crediting)
This is the basic journal entry for TDS, if we deduct tds at the time of payment, the above said journal entry will be compounted to payment entry. vice versa for expense booking due entry.
Roshan A
(Chartered Accountant)
(458 Points)
Replied 13 February 2012
 |
(1) For Expense:- (a) If your Company is liable to pay Excise Duty or Service Tax :- Expense A/c Dr. 5000/- Service Tax Input A/c Dr. 515/- To Sundry Creditor A/c 5515/- (b) If your company is not liable to pay Service Tax or Excise Duty :- Expense A/c--- Dr. 5515/- To Sundry Creditor 5515/- (2) For Payment:- Sundry Creditor A/c Dr. 5515/- To TDS Payable 552/- To Cash 4963/- (3) Now pay TDS:- TDS Payble A/c Dr. 552/- To. Cash 552/- |
 |
AGREED
Maneesh Kumar
(B.Com M.Com STUDENT CWA IPCC)
(507 Points)
Replied 13 February 2012
Expense a/c Dr. 5000
Input service tax Dr. 515
To sundry creditor a/c 4963
To TDS(Prof) Payable a/c 552
(being bill booked)
sundry creditor a/c Dr. 4963
Tds payable a/c Dr. 552
To Cash/bank 5515
(being paymnt mae to creditor and tds deposited)
right
Ravindra kumar
(student)
(87 Points)
Replied 13 February 2012
Here,
Service tax input , in which group ledger create
Jitesh Golani
(student)
(60 Points)
Replied 15 February 2012
| Originally posted by : Roshan A | ||
|
|
(1) For Expense:- (a) If your Company is liable to pay Excise Duty or Service Tax :- Expense A/c Dr. 5000/- Service Tax Input A/c Dr. 515/- To Sundry Creditor A/c 5515/- (b) If your company is not liable to pay Service Tax or Excise Duty :- Expense A/c--- Dr. 5515/- To Sundry Creditor 5515/- (2) For Payment:- Sundry Creditor A/c Dr. 5515/- To TDS Payable 552/- To Cash 4963/- (3) Now pay TDS:- TDS Payble A/c Dr. 552/- To. Cash 552/- AGREED |
|
Dear Friend, if TDS is applicable you have to deduct it at payment or credit whichever earlier.
The Journal entry which you have passed in point number 1, TDS ought to have been deducted at that stage. Your entries would hold true only when credit and payment is on the same date.
Otherwise , the above entry is absolutely correct.:)
CAclubindia
