Reverse charge of service tax on manpower supply

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

04 August 2015 I have received an Invoice from Manpower Supply Agency where Service Provider is an Individual and Service Receiver is a Corporate. Accordingly as per Reverse Charge Mechanism Company will pay Service Tax at 14% on behalf of Service Provider. Which one of the following is the correct accounting Treatment for the same.
Say For Eg. Invoice Amount is Rs. 30000
TDS at 1% Rs. 300
Service Tax 14% Rs.4200
1) Wages A/c Dr 30000
Input S.T. Deferred Dr. 4200
Manpower Supply agency Dr 300
To S.T. Deferred Payable 4200
To Manpower supply Agency 30000
To TDS payable 300
OR
2) Wages A/c Dr 25800
Input S.T. Deferred Dr 4200
Manpower Supply agency Dr 300
To Manpower supply Agency 30000
To TDS payable 300

So in short at what amount we will book the expense in Books of Accounts. At Invoice Value of at Invoice Value- S.T. amount.??????

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

04 August 2015 Book the expense at invoice value. The first entry is the right one.

Message likes : 1 times

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

Narasimha Murthy

SUBHASH SAHA

saurabh sawlani

deepak

Rameshkumar Jain

Subscribe Now

Reverse charge of service tax on manpower supply

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Accountant

CA Final

GST CONSULTANT

GST CONSULTANCY

Manager- Finance and Compliance

Senior Executive