Query regarding validity of an accounting entry
This query is : Resolved
19 December 2012
Hi All,
I have a query as to validity of the following accounting entry which is made in regard to purchase of service.
Expense A/c Dr (Amount of invoice)
Party A/c Cr (Balancing figure)
Service Tax Cr (invoice amount*75%*12.36%)
Tds payable Cr (10% of invoice amount)
My query is whether service tax payable as shown in this entry correct?
The amount of service tax as booked in the invoice is only 25% of the actual expense.
Also,in this entry no cenvat credit has been taken of such 25% Service tax as shown in the invoice.
Thanks in advance
I have a query as to validity of the following accounting entry which is made in regard to purchase of service.
Expense A/c Dr (Amount of invoice)
Party A/c Cr (Balancing figure)
Service Tax Cr (invoice amount*75%*12.36%)
Tds payable Cr (10% of invoice amount)
My query is whether service tax payable as shown in this entry correct?
The amount of service tax as booked in the invoice is only 25% of the actual expense.
Also,in this entry no cenvat credit has been taken of such 25% Service tax as shown in the invoice.
Thanks in advance
19 December 2012
Service tax has to debit because of you are the payer of fee.
OM SAI SRI SAI JAI JAI SAI
OM SAI SRI SAI JAI JAI SAI
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