07 February 2014
ya...covered under 194-I. but given that under 194-I, no TDS is applicable if annual payment to such deductee is less than Rs 1.8 lakhs.
10 February 2014
CENVAT credit is available only and only on tax invoice. Am I correct??? ----------------------------------- Please ans one more qstn. Is this entry correct.... ( A most famous school gives a add in news paper & channels)
1) On the time of 100% advance on proforma invoice (which includes Service Tax amount also) Adv. Agency a/c Dr. (Including ST) To 2% TDS (u/s 194 C) To Bank ----------------------------------- 2) Journal entry when Tax Invoice will receive Adv. Exp. a/c Dr. Service Tax a/c Dr. To Adv. Agency ------------------------------------
17 April 2014
Is TDS applicable if we order to a printing press for print some brochures, pamphlets etc as per our specification and they charge VAT on whole amount?
27 July 2025
Here's a clear breakdown of your queries:
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### 1. **TDS on Sound System Payment**
* **If the payment is for renting the sound system (hiring charges), TDS is applicable under Section 194-I (Rent).** * **Threshold:** No TDS if annual payment to the same party is less than Rs. 1.8 lakhs. * **If payment is for purchase of sound system (not rent), TDS under 194C (Contract) may apply if it qualifies as a work contract or supply contract.**
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### 2. **CENVAT Credit and Entries on Advertisement Advance**
* **Yes, CENVAT credit is available only on tax invoices issued by the service provider.**
* Your suggested entries:
**On payment of 100% advance including Service Tax:**
``` Adv. Agency A/c Dr. (Including ST) To TDS Payable A/c (2% under 194C) To Bank A/c ```
**When Tax Invoice is received:**
``` Adv. Expense A/c Dr. (Excluding ST) Service Tax A/c Dr. To Adv. Agency A/c ```
* These are **correct in principle**, but make sure to separate service tax from advance payment for proper credit.
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### 3. **TDS on Printing Press Charges with VAT**
* **TDS is applicable on printing charges under Section 194C (Contract).** * **VAT is a pass-through tax and no TDS is deducted on VAT.** * TDS should be deducted **only on the net amount excluding VAT**.
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If you want, I can help you draft the exact accounting entries or clarify any other points!
CAclubindia
