Hi All
Our organization received an amount a year back as a lum sum amount. we deposited service tax @ 12.36 on it (by applying concept of grossing up). We did not generate the invoice at that time. In current year we issued the invoice for the whole amount with service tax @ 14% and Swach Bharat cess @ 0.5% the client deducted the amount paid earlier and paid rest amount. information below may help you.
Amount received in 2014-15 1,00,000/- journal entries made as below
bank Dr 90,000
TDS 10,000
To Party 89,000
To Service tax @ 12% 10,680
To Cess 2% 213
To SHEC1% 107
Now we issued invoice as under
Service charge 2,00,000
Service Tax @ 14% 28,000
Swach bharat cess 1000
TOTAL 2,29,000
The client made the payment => 2,29,000 - 1,00,000 = 1,29,000 - 12,900(TDS) = 1,16,100
How to incorporate this in my books?
CAclubindia
