Service tax

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

14 April 2010 i am working in corporate, one of our branch has collected service tax through their invoicing, how to pass entry in corporate booke (whether we need to pass monthly or annualy)

Regards
Sridhar

Ritesh Goyal

Ritesh Goyal (Expert)
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14 April 2010 Query is not so much clear. But for service tax compliance, you have to make the service tax to the credit of central government once you receive amount of service tax from the customer.

CA CS CIMA Prakash Somani

CA CS CIMA Prakash Somani (Expert)
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14 April 2010 Additon to what ritesh said. Enrty should be monthly :)

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CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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15 April 2010 If you are maintaing centralised system of accounting and the payment collected by the Branch remitted to HO. you need to debit bank and credit branch .since the query is not full.you can explain the details full

Querist : Anonymous

Querist : Anonymous (Querist)

15 April 2010 Hi Ramesh

I am working in corporate basically our's is service oriented company, we are doing centralised billing for retainer rest and all (for operation jobs) invoices are done at branch level, for some of the invoice they are collecting service tax, this is our story , now can you advice how to pass the entries in corp

Regards
Sridhar

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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16 April 2010 Since your are having centralized billing under service tax, the collected service tax by branch has to be remitted you the Corporate and Service tax payable ledger also need to be kept centrally at Corporate the entry will be
Entries In Branch books
For charging service tax by Branch
Dr: Debtors
Cr: Sales
Cr: Service tax payable

For transferring service tax to Corporate

Dr: Service tax payable
Cr: Corporate HO A/c

For collecting money

Dr: Cash/Bank
Cr: Debtors

For collected money transfer to Corporate HO

Dr: Corporate HO A/c
Cr: Cash/Bank

Entries In HO books
For charging service tax by Branch
No entry required

For transferring service tax to Corporate

Dr: Respective Branch A/c
Cr: Service tax payable A/c

For collecting money from Branch

Dr: Cash/Bank
Cr: Respective Branch A/c

Payment of Service Tax

Dr: Service tax payable
Cr: Cash/Bank

Querist : Anonymous

Querist : Anonymous (Querist)

16 April 2010
Thank you very much Ramesh Sir!

Regards
Sridhar

Querist : Anonymous

Querist : Anonymous (Querist)

27 April 2010 Hi

ours is basically service oriented company, we have under taken some sales promotional activites on contract basis, during fy 09-10 work was finished up to 65% can we stright away raise the invocie for that portion or we need to pass provision for that.

Regards
Sridhar

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Querist : Anonymous

Querist : Anonymous (Querist)

27 April 2010 Hi

I would like to know about revenue matching concept, can any one help in this regard

Regards
sridhar