10 November 2011
Our client sells car-insurance policies. The company gives 4% commission on policies sold. I want to know that what journal entry is to be passed, because there is 2% deduction of TDS, and also, 10.3% Service Tax element. How to pass the journal entry for TDS and Service Tax Element?
For example, policies sold, and its 4% is1,40,000 and 10.3% Service Tax is14,420. Total is1,54,420.
Of this1,54,420 TDS of 2% is 3088, and net amt receivable is1,51,331.
Anybody please tell me, how to pass journal entry for it. Thanks.
CAclubindia
