Journal entry after payment of service tax from parent co.

This query is : Resolved

Sudesh (Querist)
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01 June 2015 Dear Sir,

There are two company A & B. B is a sister company of A and B is not having its Bank account. It is newly establish. While generating sale B providing service tax details of A only. now while making service tax payment due B is not having its bank account we paid service tax of B from A's Account now i want to passed JV in both the company to adjust service tax.

Kindly guide me to pass the entry .

Sudesh

Sudesh (Querist)
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01 June 2015 And under which head i kept B in to A account.

CA Parul Saxena

CA Parul Saxena (Expert)
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01 June 2015 While making service tax payment:-

In the books of B:-
Service tax payable Dr...........
TO A Ltd.

In the books of A:-
B Ltd....................
To Bank account

but you should avoid making payment from other companies as co.act 13 has restrictions on it.....

Sudesh

Sudesh (Querist)
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01 June 2015 so in the book of A i consider B as debtor or something else

CA Parul Saxena

CA Parul Saxena (Expert)
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01 June 2015 Yes consider B as a debtor

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