Journel entry
This query is : Resolved
07 August 2014
manpower contractor raised a invoice to us rs.112360 inclusive service tax rs. ?12360@12.36%. so what should I pass journel entry under reverse charge
by Ganeshbabu K on07 August 2014
Dr.Manpower Charges A/c 100000 Dr.Service tax input A/c 12360 Cr.Manpower Contractor name (balance fig) Cr.TDS Payable Contactor 194C 2%/1% on 1lakh
but under reverse charge we have to pay 75% service tax to directly govt. in this case how can we pass above entry
07 August 2014
Under reversecharge mechanism service provider will charge 12.36% of service tax only by company or LLP
.
.
If other service provider charged complete 12.36% of service tax means you are not company or LLP
.
.
Okay..if you are a company or llp but receied manpower charges bil including complet 12.36% of service tax from individual,firm
.
.
As per reversecharge mechanism your legal liability is to pay 75% of service tax directly to dept.
.
So
1)Pay only 25% of service tax i.e, 3.09% of service tax to service provider
2)pay balance 75% of service tax directly to dept
.
3)pass reverse entry for 75% of service tax which is in bill
Dr.Service provider
Cr.manpower charges
.
.
If other service provider charged complete 12.36% of service tax means you are not company or LLP
.
.
Okay..if you are a company or llp but receied manpower charges bil including complet 12.36% of service tax from individual,firm
.
.
As per reversecharge mechanism your legal liability is to pay 75% of service tax directly to dept.
.
So
1)Pay only 25% of service tax i.e, 3.09% of service tax to service provider
2)pay balance 75% of service tax directly to dept
.
3)pass reverse entry for 75% of service tax which is in bill
Dr.Service provider
Cr.manpower charges
07 August 2014
Entries if bills are under RCM...
.
TDS IGNORED
.
Dr.manpower charges
Dr.Service tax input(3.09% of service tax)
Cr.service provider
.
.(as per invoice on date of invoice)
Dr.Service tax defered input
Cr.RCM Service tax payable
(service tax payable as per RCM on date of invoice)
.
.
Dr.RCM Service tax payable
Cr.bankA/c
(on payment of RCM Payable)
Dr.Service tax input
Cr.Service tax defered input
(Availed input on payment of RCM Service tax)
.
TDS IGNORED
.
Dr.manpower charges
Dr.Service tax input(3.09% of service tax)
Cr.service provider
.
.(as per invoice on date of invoice)
Dr.Service tax defered input
Cr.RCM Service tax payable
(service tax payable as per RCM on date of invoice)
.
.
Dr.RCM Service tax payable
Cr.bankA/c
(on payment of RCM Payable)
Dr.Service tax input
Cr.Service tax defered input
(Availed input on payment of RCM Service tax)
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Refund Annexure-B
- Liable to deduct tds and 44ADA
- Sale of Equity shares for Purchase of Residential Property
- Nomination of Bank for refund in itr 2
- Section 56(2) of the Income tax Act 1961 , Gift to relative .
- ECO SUPPLY REPORTIONG IN GSTR-1
- Is Interest applicable for payment made through credit ledger vide DRC03 for FY 2020-21 & 2021-22
- CCFS 2026 Schemed
- Subscription paid to foreign customer
- Two seprate Invoice needed
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
