Journal entry for rental income.

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

21 April 2014 Mr. A receives rent from X @ 55125. Service Tax is also charged on the same @ 12.36%.
Service Tax amounts to 6813 (6615+132+66).
What JE will MR. A pass for booking rental income if TDS @ 10% us 194IB is deducted by X on payment?

Hitendra Jain

Hitendra Jain (Expert)
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21 April 2014 For Booking of Rental Income

Mr. X A/C Dr. 61938
To Rent / Rent Receivable A/C 55125
To Service Tax Payable A/c 6615
To Education Cess Payable A/C 132
To SHE Cess Payable A/C 66
Being Rent for the period booked and service tax thereon provided for.

For Receipt and TDS

TDS on Rent A/c Dr. 5513
Cash / Bank A/c Dr. 56425
To Mr. X A/c 61938
Being Rent for the period received after deducting TDS.

For TDS A/c Set off

Provision for Tax A/c Dr. 5513
To TDS on Rent A/c 5513
Being Tax Liability reduced by TDS.

Rupesh Jain

Rupesh Jain (Expert)
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21 April 2014 mr x dr 61938
to rent received 55125
to service tax payable1 12.36% 6813

then he rece ch.

bank 56425
tds receivable 5513
to x a/c
to tds receivable

service tax payable a/c Dr
to Bank a/c