Tds

This query is : Resolved

venkatesh (Querist)
Follow

10 May 2014 security service charges - 18000
service tax - 2225
Total amount - 20225 bill issued

What will be the journal entry ?

and i paid the 19820 by deducting 2% tds (405)

What will be the payment entry ?

CA Parul Saxena

CA Parul Saxena (Expert)
Follow

10 May 2014 you wrongly deduct TDS it should be deducted on Rs.18000 only @ 2% i.e.360.
Entry
Security service charges Dr...........20225
To TDS................................360
To Vendor.............................19865

Vendor Dr...............................360
To Cash/Bank.............................360

Ganeshbabu K

Ganeshbabu K (Expert)
Follow

10 May 2014 No tds applicable on servicetax if shown seperately
.
CBDT Circular 1/2004
.
However as u deducted 2%already deposit the same to dept and show in tds return
.1)journal entry
.
Dr.security chargesa/c 18000
Dr.servicetax a/c 2225
Cr.tds payable 194C 405
Cr.serviceprovider 19820
.
2)payment entry
.
Dr.serviceprovider a/c 19820
Cr.bank a/c 19820

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

Summarize this with AI

ChatGPT Perplexity Claude Google AI Grok