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This query is : Resolved

Amit Nandy (Querist)

26 September 2016 please let me know the following

If advertisement exp Rs-100000/- & service tax Rs-15000/-when we make the payment after deduction of TDS,we pass the entry

Adv.... .Dr100000
Service Tax...Dr15000/-
TDS @2% 2000/-( TDS deducted Gross Value- Service Tax *2%)
To Party 113000/-

Is the above entry correct.There is any violation of AS1

Regards
Amit Nandy

Sandeep Dharar

Sandeep Dharar (Expert)

27 September 2016 No the entry is not correct. The entry should be:-

Adv. 100500
ST 14000
KKC 500
To TDS 2000
To Party 113000.

Explanation:- U can claim Cenvat of Service Tax and Krishi Kalyan Cess, hence both should be debited(or transferred to ST/KKC Input tax credit). Swcch Bharat Cess Cenvat is not available to claim as ITC by the assessee so I added it to value of advertisement, U can also transfer to SWC ITC account if u want, but remember we cant' claim credit of it. TDS is ur liability to pay, so it should be credited, instead of debit.

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