Biju.V (Accountant) (128 Points)
23 January 2010
| WE ARE IN TO CONTRUCTION BUSINESS | ||||||
| WE RAISE INVOICE TO OUR CLAINTS LIKE THIS | ||||||
| GROSS AMOUNT | 75000 | |||||
| VAT @ 12.5 ON 75% OF GROSS AMOUNT | 7031 | |||||
| SERVICE TAX @ 10.3 ON 33.33% OF GROSS AMOUNT | 2575 | |||||
| TOTAL AMOUNT | 84606 | |||||
| IF OUR CLAINT PAY PART PAYMENT OF RS.50000/- HOW DO I CALCULATE WHAT IS THE SERVICE TAX INVOLVED IT???? | ||||||
| PLEASE TELL ME THE CALCULATION | ||||||
THANKS IN ADVANCE
BIJU
Biju.V
(Accountant)
(128 Points)
Replied 23 January 2010
Please Can anybody help me on this?????????
CA Dhiraj Ramchandani
(CA, M. com)
(10823 Points)
Replied 23 January 2010
HI biju, as per my simple thinking or logical thinking... ur calculation goes in prportional basis... That means, the total amount is Rs. 84606, while the amount recieved is Rs. 50000.., then all the taxes should be calculated in propotion to 50000/84606
Divya K S
(CA)
(289 Points)
Replied 23 January 2010
Hi,
If your client is paying part payment, then the entry will be
Bank A/c Dr
To Client A/c
When client pays the remaining amount i.e, Rs. 34,606 also, the entry will be same. I dont think so that the service tax & VAT amount need to be apportioned this way. Since, in this case, the total payment amounts to Rs. 84,606 & VAT component is Rs. 7031 & Service Tax Component is Rs. 2575 in total Rs. 84,606, amount need not be apportioned.
Further amount need not be apportioned since it belongs to a same invoice & VAT & ST is calculated on the total basis.
CA. VIKAS GUPTA
(PROPRIETOR)
(305 Points)
Replied 23 January 2010
Hi,
i think you can calculate in following way: -
2575/84606*50000= Rs.1522/-
CA Priyank
(Priyank Sanghavi & Co)
(296 Points)
Replied 23 January 2010
hi
I think you should pay the service tax fully when ever it becomes due as your client pays you part payment.
In future if your client get settle in less amount you may demand credit for the same in parportion basis from both department.
Your accounting entry would be same Divya
CAclubindia
