Service tax on security service providers
This query is : Resolved
MANESH WAGHMARE
(Querist)
31 August 2013
Kindly suggest the journal entry of below transactions.
We received the bill of Security charges from the Security Service Provider. They charge us 30,000/- Basic and 25%(3.09) Service tax as per (Notification 45-46 dated 07/08/2012) We have to deduct TDS 1% in Case of INDIVIDUAL Or 2% Other than INDIVIDUAL on Rs 30,000.
We received the bill of Security charges from the Security Service Provider. They charge us 30,000/- Basic and 25%(3.09) Service tax as per (Notification 45-46 dated 07/08/2012) We have to deduct TDS 1% in Case of INDIVIDUAL Or 2% Other than INDIVIDUAL on Rs 30,000.
CA Suresh Jain
(Expert)
01 September 2013
The amount on which TDS is to be deducted is amount inclusive of Service Tax charged by service provider. The amount of service tax paid by you under RCM is not to be included.
MANESH WAGHMARE
(Querist)
01 September 2013
But what will the effect of remaining 75% sharing in journal entry.
Dr Security Charges 30,000
Dr ST Receivable@3.09(25%)927
Cr TDS On Contractor 619
Cr Party A/c 30308.
But what about the 75% Contribution of Service Receiver in the said journal Entry.
I just want to know that what is the JV Entry for 75% Contribution of Service Receiver?
Dr Security Charges 30,000
Dr ST Receivable@3.09(25%)927
Cr TDS On Contractor 619
Cr Party A/c 30308.
But what about the 75% Contribution of Service Receiver in the said journal Entry.
I just want to know that what is the JV Entry for 75% Contribution of Service Receiver?
CA Suresh Jain
(Expert)
02 September 2013
You can pass the following entry instead :-
Security Charges Dr. 30,000.00
Service Tax (Input Credit) Dr. 3,708.00
By Service Tax (Reverse Charge)
Payable 2,781.00
By TDS (Contractor) 619.00
By Party 30,308.00
Security Charges Dr. 30,000.00
Service Tax (Input Credit) Dr. 3,708.00
By Service Tax (Reverse Charge)
Payable 2,781.00
By TDS (Contractor) 619.00
By Party 30,308.00
MANESH WAGHMARE
(Querist)
02 September 2013
But can we take the input credit of 75% contribution of Service receiver i.e. Rs 3708/-?
CA Suresh Jain
(Expert)
02 September 2013
Yes, you can take credit of the ST Rs. 927.00 immediately and balance i.e. belonging to RCM after making the payment in cash
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