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
CAclubindia
