accounting query

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irfan (Querist)

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)

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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