Amit Kumar (Accountant) (276 Points)
30 July 2014Dear All,
I would like to enquire that our client giving us commission invoice for broking they told us that u can only deduct the TDS before applying the service tax is there anybody has knowledge that how to make jounal entry for it for reflecting the fullin commission invoice please help me i am waiting for the same
Thanks in advance
Amit Kumar
Tribhuvan Aditya Singh
(Student as well as Self-employed)
(3710 Points)
Replied 30 July 2014
Tribhuvan Aditya Singh
(Student as well as Self-employed)
(3710 Points)
Replied 30 July 2014
Amit Kumar
(Accountant)
(276 Points)
Replied 31 July 2014
Dear Tribhuvan
If you explain it with example then it very helpful sir
Thanks in advance
V Prabhakara Rao
(Assistant Manager)
(106 Points)
Replied 31 July 2014
Dear Amit,
TDS to be deducted on Gross Amount before Service Tax. Example
| Invoice Value | 100 |
| Service Tax @ 12.36% | 12.36 |
| Total | 112.36 |
| TDS to be deducted @ 2% on | 100 |
| TDS Amount | 2 |
Tribhuvan Aditya Singh
(Student as well as Self-employed)
(3710 Points)
Replied 04 August 2014
okkk lets take an example for this...
suppose your bill details are as follows
gross commission - 5000.00
service tax @ 12.36% - 618.00
net total - 5618.00
CASE 1: CENVAT credit available
at time of booking expense
Commission A/c Dr. 5000.00
Cenvat Credit - Input A/c Dr. 618.00
To Creditor A/c 5618.00
at time of making payment
Creditor A/c Dr. 5618.00
To Bank A/c 5118.00
To TDS Payable A/c ( @ 10% on 5000.00) 500.00
CASE 2: CENVAT credit not available
at time of booking expense
Commission A/c Dr. 5618.00
To Creditor A/c 5618.00
at time of making payment
Creditor A/c Dr. 5618.00
To Bank A/c 5118.00
To TDS Payable A/c ( @ 10% on 5000.00) 500.00
Tribhuvan Aditya Singh
(Student as well as Self-employed)
(3710 Points)
Replied 04 August 2014
please make a correction in my first reply where i said that cenvat a/c will be credited. acutally cenvat a/c will be debited with s.tax amount.
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