Need clarification about entries of s.tax.

This query is : Resolved

Guest

Guest (Querist)

15 December 2011 Hi All,

We have a Interior Designers Pvt Ltd. Co. in chennai. We do Interior Designers work for Corporate. We raise invoice/bill of huge amounts like 50lacs. when we raise invoice we charge S.Tax to our clients and when we received payments we received after deducting TDS. I want to know the proper entries of both the cases??

U S Sharma

U S Sharma (Expert)
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15 December 2011 at the time of billing

sundry debtors a/c dr ......zzzzz
to service provided ...............xxxxx
to service tax .....................xxxx

at the time of payment of service tax
service tax a/c dr ........xxxx
to cash / bank a/c .............xxxx

at the time of TDS/Payment

cash / bank a/c dr ..........xxxxx
Income tax (TDS) a/c dr ......xxxx
to Sundry debtors .................xxxxx

Incometax / TDS is to be set off with incometax liability of service provider after the finalization of accounts for respective AY

Guest

Guest (Querist)

15 December 2011 Thanks for clarification...

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