Journal entry

This query is : Resolved

mohit pathak (Querist)
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03 April 2016 Hi All
Our organization received an amount a year back as a lum sum amount. we deposited service tax @12.36 on it (by applying concept of grossing up). We did not generate the invoice at that time.
In current year we issued the invoice for the whole amount with service tax @14% and Swach Bharat cess @0.5% the client deducted the amount paid earlier and paid rest amount. information below may help you.

Amount received in 2014-15 1,00,000/- journal entries made as below
bank Dr 90,000
TDS 10,000
To Party 89,000
To Service tax @12% 10,680
To Cess 2% 213
To SHEC1% 107

Now we issued invoice as under

Service charge 2,00,000
Service Tax @14% 28,000
Swach bharat cess 1000
TOTAL 2,29,000

The client made the payment as 2,29,000 - 1,00,000 = 1,29,000 - 12,900(TDS) = 1,16,100

How to incorporate this in my books?

CA.Sourabh Sethia

CA.Sourabh Sethia (Expert)
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04 April 2016 1
Bank Dr 116100
TDS Dr 12900
To Party 111000
To ST 17000
To SWC 1000

2
Party Dr 200000
To Service Charge 200000 (by this entry party acct closed)

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