Commission to lic agent.
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
30 September 2014
What is the accounting treatment for Commission paid to Insurance agent in the books of insurance company?
30 September 2014
On passing expense entry,
Commission exp. Dr.XXXX
To TDS on commission a/c. Cr.XXX
(if applicable)
To name of party (insurance agent) Cr.XXX
On making payment,
Insurance agent a/c. Dr.XXX
To Cash / bank a/c. Cr.XXX
Commission exp. Dr.XXXX
To TDS on commission a/c. Cr.XXX
(if applicable)
To name of party (insurance agent) Cr.XXX
On making payment,
Insurance agent a/c. Dr.XXX
To Cash / bank a/c. Cr.XXX
Message likes :
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Querist : Anonymous
Querist :
Anonymous
(Querist)
30 September 2014
How to pass entries of service tax in the case of services provided by insurance agent, in the books of insurance company?
30 September 2014
If service tax is applicable to the agent, then the insurance company has to take service tax invoice from him and entries in the books of the insurance co. will be as under,
Commission exp. Dr.XXXX
Service tax receivable 12% Dr.XXXX
Service tax edu. Cess 2% Dr.XXXX
To TDS on commission a/c. Cr.XXXX
(if applicable)
To name of party (ins. agent) Cr.XXX
On making payment,
Insurance agent a/c. Dr.XXX
To Cash / bank a/c. Cr.XXX
Kindly note: TDS will be deducted (if applicable) on basic amount and not on service tax portion.
Thanks.
Commission exp. Dr.XXXX
Service tax receivable 12% Dr.XXXX
Service tax edu. Cess 2% Dr.XXXX
To TDS on commission a/c. Cr.XXXX
(if applicable)
To name of party (ins. agent) Cr.XXX
On making payment,
Insurance agent a/c. Dr.XXX
To Cash / bank a/c. Cr.XXX
Kindly note: TDS will be deducted (if applicable) on basic amount and not on service tax portion.
Thanks.
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1 times
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