Accounting of Trademark Renewal Government Fee

This query is : Resolved

Santosh (Querist)
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19 February 2021 Hi Sir,

Good Morining...!

Invoice relating to Trademark Renewal Government fee. how to account this in books of accounts.

The bill has IGST and included of professional fees as well separately.

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)
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06 July 2024 To account for the invoice relating to trademark renewal government fee, including IGST and professional fees separately, you would follow these steps:

### 1. Identify Components of the Invoice:
- **Trademark Renewal Government Fee:** This is the fee charged by the government for renewing the trademark registration.
- **IGST:** Integrated Goods and Services Tax, applicable if the service is interstate.
- **Professional Fees:** Fees charged by professionals, if any, for facilitating the trademark renewal process.

### 2. Accounting Entries:

#### A. Trademark Renewal Government Fee:
Assuming the invoice details are as follows:
- Trademark Renewal Government Fee: Rs X
- IGST: Rs Y
- Professional Fees: Rs Z

1. **Debit the respective expense accounts:**
- Debit: Trademark Renewal Expense (or Government Fee Expense) - Rs X
- Debit: IGST Input (if you're eligible to claim Input Tax Credit) - Rs Y
- Debit: Professional Fees Expense - Rs Z

2. **Credit the payable accounts (assuming payment is made):**
- Credit: Bank Account or Accounts Payable (if payment is pending) - Rs (X + Y + Z)

#### B. Accounting Entry Example:
If you've already paid the invoice:

- Debit: Trademark Renewal Expense - Rs X
- Debit: IGST Input - Rs Y
- Debit: Professional Fees Expense - Rs Z
- Credit: Bank Account - Rs (X + Y + Z)

### 3. Reporting and Documentation:
- Ensure the expenses are properly classified in your chart of accounts under their respective expense categories.
- Record IGST separately to facilitate input tax credit reconciliation.
- Maintain proper documentation of the invoice for audit and compliance purposes.

### 4. GST Treatment:
- Ensure that IGST is correctly accounted for based on the GST registration status (interstate/intrastate supply).
- If eligible, claim input tax credit on the IGST component.

By following these steps, you can accurately record and account for the invoice related to trademark renewal, including government fees, IGST, and professional fees in your books of accounts.

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