accounting query

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irfan (Querist)
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22 January 2011 how to do entry of service tax

i am working in a ca firm and we are making bill of professional fees on excel

i want to know that how to make entries of professional fees bill along with service tax , educational cess in Tally package

we can not make it a purchase entries as it is a services bill

so which entry for service bill of C.A

HOW TO MAKE ENTRIES
PLZ HELP ME OUT

IN DETAIL PLZ

BEST REGARDS
IRFAN

vinu vasudevan

vinu vasudevan (Expert)
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24 January 2011 Dear Irfan,

I will answer your query with the help of an example

If Mr X is a client (customer)of your firm,and he has to pay you Rs.11030(Rs.10000 as Audit Fees,Rs.1000 as Service Tax,Rs.20 as Education cess & Rs.10 as SHH cess).Then the Accounting Entry will be as follows:

Mr X A/c Dr 11030
To Audit Fees 10000
To Service Tax payable 1000
To Edu Cess Payable 20
To SHH Cess Payable 10

Note:In Tally, Mr.X under "A/c's Receivable Head,Audit Fees under "Other Income",ST Payable,Edu Cess Payable & SHH Payable under "Current Liabilities".

Now when Mr X settles his payment,you just give a credit to Mr.X's A/c.Ok

Hope you u understand this

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