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Journal entry

Abhishek dwivedi (Accounts executive) (36 Points)

26 February 2016

Ram Held a service from A Ltd, A ltd raised a invoice to ram Amt is 50000+14.5% service tax, ram receive invoice and deducted 10% tds . journalise entry in the books of Ram also consider that Ram also eligible for tax credit for service tax paid.

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2 Replies

Sachin (Student) (21 Points)
Replied 26 February 2016

Expense A/c Dr. 50,000 Input Service Tax A/c Dr. 7,000 Input Swacch Bharat Cess A/c Dr. 250 A Ltd. A/c Dr. 5,000 To TDS Payable A/c 5,000 To A Ltd. A/c 57,250 (Being invoice of expense recorded) Alternatively: A Ltd.'s A/c can be net booked of Rs.52,250 without debiting it of Rs. 5000 but I prefer the above entry as expense amount (inc. service tax) matched with amount credited which will be easy for reconciliation and checking in future.