Hi,
some one tell me step by step procedure of TDS and Service tax.and afte deducting TDS what accounting entry will come.
NANDURI RAVI SURYA NARAYANA MU
(ACCOUNTANT)
(194 Points)
Replied 18 April 2009
After Deduction of TDS: In this also some critiria is there . If that is Section 194I, we cannot consider Service Tax for inclusion of TDS. But other Sections like 194A,B,C,D,G,H we must consider to cut TDS including Service Tax.
Accounting Entry
Accounts Payables to Suppliers A/C DR 10,000
To Service Tax 1000
To TDS Payable 1000
To Bank 8000
this is the entry
Amol Gopal Kabra (CA,CS,DISA)
(Practicing CA)
(8539 Points)
Replied 21 April 2009
In my opinion there needs some modification in the above entry.
In case the recepient of service is also a service provider who collects service tax on the out-put services, the entry shall be as below.
Account Head (Nature of Expenditure) A/c Dr. xxxxx
Service Tax Credit A/c Dr. xxxxx
To TDS Payable A/c xxxxx
To Bank / Vendor A/c xxxxx
However, if in case the recepient of service is not a service provider or who doesnt collect service tax on the out-put services, the entry shall be as below.
Account Head (Nature of Expenditure) A/c Dr. xxxxx
(The amount is inclusive of Service Tax)
To TDS Payable A/c xxxxx
To Bank / Vendor A/c xxxxx
NANDURI RAVI SURYA NARAYANA MU
(ACCOUNTANT)
(194 Points)
Replied 23 April 2009
| Originally posted by :chintan | ||
| " | amol is right | " |
Pls. check Service Tax paid as per Service Receiver, is Service Tax payble, otherwise we can avail the Credit of the Service, by what amol advised
Landmark Judgments: Important Provisions of the EPF & ESI Act interpreted by the Honorable Supreme Court of India
CAclubindia
