Entry for service tax and tds on consultancy fees
This query is : Resolved
15 May 2013
Would like to have an opinion on the following transaction.
lets say company A receives a consultancy services and the invoice for the same is as follows:
Consultancy services 100000
Service tax @12.36% ( rounding off for convenience) to 12000
tds on 112000@ 11.33% rounding off to 13000
So what would be entries in books of A
as per my opinion it should be as follows in books of A
1)first entry:
Consultancy fees Dr. 100000 -
ServiceTax payable A/c Dr. 12000 -
Tds A/c Dr. 13000 -
To A A/c Cr - 112000
To Tds payable A/c Cr - 13000
2) second entry:
Tds payable A/c Dr. 13000 -
To Bank A/c Cr. - 13000
3) Third entry :
A A/c Dr. 112000 -
To Tds A/c Cr. - 13000
To BankA/c Cr. - 99000
lets say company A receives a consultancy services and the invoice for the same is as follows:
Consultancy services 100000
Service tax @12.36% ( rounding off for convenience) to 12000
tds on 112000@ 11.33% rounding off to 13000
So what would be entries in books of A
as per my opinion it should be as follows in books of A
1)first entry:
Consultancy fees Dr. 100000 -
ServiceTax payable A/c Dr. 12000 -
Tds A/c Dr. 13000 -
To A A/c Cr - 112000
To Tds payable A/c Cr - 13000
2) second entry:
Tds payable A/c Dr. 13000 -
To Bank A/c Cr. - 13000
3) Third entry :
A A/c Dr. 112000 -
To Tds A/c Cr. - 13000
To BankA/c Cr. - 99000
15 May 2013
Dear Pankti,
According to me, the following entries should come:
1. consultancy fees Dr. 1,00,000
Service Tax Credit Dr 12,000
To A A/c 1,12,000
2. A A/c Dr 1,12,000
To Bank 99,000
To TDS A/c 13,000
3. TDS A/c Dr 13,000
To Bank A/c 13,000
Now, the Service Tax Credit a/c in the first entry can be used for adjusting the ST payment required to be made by the company to the Govt.
the following entry will come:
service tax payable Dr XXX
to Service Tax Credit XXX
- Ankit
According to me, the following entries should come:
1. consultancy fees Dr. 1,00,000
Service Tax Credit Dr 12,000
To A A/c 1,12,000
2. A A/c Dr 1,12,000
To Bank 99,000
To TDS A/c 13,000
3. TDS A/c Dr 13,000
To Bank A/c 13,000
Now, the Service Tax Credit a/c in the first entry can be used for adjusting the ST payment required to be made by the company to the Govt.
the following entry will come:
service tax payable Dr XXX
to Service Tax Credit XXX
- Ankit
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Accounting treatment of AMC alongwith the purchase of Laptop
- Condonation Request sec 119(2) b -Enhancement Limit of Leave Exemption prior to AY 2023
- GST Treatment of Purchases with GST Paid where Outward Supplies of Manufactured CattleFeed Exempt
- Issuing of delivery challan by seller of goods
- Not ordinarily resident having partnership income in India and salary in USA is any form to filed be
- Nursery business
- WRONG GSTR7 ENTRIES ACCEPTED ERRONEOUSLY
- Tax on Amount transferred in HUF Account
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
