Jv for rent payment

Dear Sowmya S

Following is will be the entry for the JV:-

Rent A/c Dr 

        To Rent Payable 

        To Tds (194-I) Payable

        To Service Tax Payable

After this entry for payment you can pass this entry:-

1. Rent Payable A/c Dr

        To Bank/ Cash

2.  Tds (194-I) Payable Dr

        To Bank/Cash

3.  Service Tax Payable Dr

        To Bank/Cash

Hi,

rent a/c   dr

tds on rent payable cr

service tax payable cr

bank / cash cr

Dear Rohit,

My query is whether the Rent A/c has to be debited to Rs.1,12,360/-(including ST)?

Hi

what is the condition in your agreement entered with the owner

if the condition as per agreement      rent includes service tax or excludes service tax if includes rent amount divided by 112.36 x 12.36= service tax amount other wise rent amount x 12.36 = service tax amount.

Dear, 

It depends on whether youwant to take credit of service tax or not.If you donot wish to take credit of service tax then debit the whole amount of rent including service tax & if you wish to take credit then record the servitax paid by you in Service tax credit receivable account as an asset.

Note: As per applicable laws no tds is required to be deducted on the value of service tax in the bill, you need to deduct the tds on the value of rent i.e. 1,00,000.

For further queries please revert back or mail me at rohit_sim123 @ yahoo.com