TDS & Service Tax
This query is : Resolved
20 November 2008
Query:-If I am purchasing some Machinery & pay freight for that machinery Rs.50000/- Is their any liability to deduct TDS from freight payment,& pay service tax, if I capatilize this Expenses?????
20 November 2008
TDS will have to be deducted on the freight payment.
Also service tax under GTA will have to be paid.
Also service tax under GTA will have to be paid.
20 November 2008
Pl. tell me proper accounting entry to capatilize expenses????????????
20 November 2008
Cartage exps Dr 50000
Transporter cr 50000
Transporter Dr 1030
TDS @ 2.06% cr 1030
Dr serice tax on 25%cartage 1500
Dr cess 30
Dr cess s&H 15
CR Bank 1545
Transporter cr 50000
Transporter Dr 1030
TDS @ 2.06% cr 1030
Dr serice tax on 25%cartage 1500
Dr cess 30
Dr cess s&H 15
CR Bank 1545
20 November 2008
Thankx RamG!!!
But I want to know how to Capatilize Expenses on purchase of Machinery???????
But I want to know how to Capatilize Expenses on purchase of Machinery???????
20 November 2008
you have two options prashant:
1. directly debit the machinery account by the amount of freight and service tax thereon if you are not claimint the cenvat thereof. entry will be:
Machinery a/c dr. (value+freight+s.tax)
To supplier a/c Value
To transporter a/c Freight
To s.tax payable a/c S.tax
(this is a combine entry you can pass separate entry also)
2. another option is to transfer the freight expenses account opened by mr. ram avtar to machinery a/c. entry will be:
Machinery a/c dr. Freight
to cartage exp. a/c
further you should also transfer the service tax exp. to the machinery a/c by same entry if you are not taking the cenvat credit of the same.
1. directly debit the machinery account by the amount of freight and service tax thereon if you are not claimint the cenvat thereof. entry will be:
Machinery a/c dr. (value+freight+s.tax)
To supplier a/c Value
To transporter a/c Freight
To s.tax payable a/c S.tax
(this is a combine entry you can pass separate entry also)
2. another option is to transfer the freight expenses account opened by mr. ram avtar to machinery a/c. entry will be:
Machinery a/c dr. Freight
to cartage exp. a/c
further you should also transfer the service tax exp. to the machinery a/c by same entry if you are not taking the cenvat credit of the same.
20 November 2008
1. Can I Capatalize Service Tax Paid on Freight?
2. If I Capatalize Installation Charges,should I CApatalize Installation Charges + Service Tax on Installation Charged by Vendor in Separate bill for Installation??????
2. If I Capatalize Installation Charges,should I CApatalize Installation Charges + Service Tax on Installation Charged by Vendor in Separate bill for Installation??????
20 November 2008
I concur with the view expressed by Sri Zeeshan. If there is no scope for claiming Cenvat credit, then you have to capitalise Service Tax component also.
Whether a combined bill is obtained or two seperate bills for Installation Charges and Service TAx are obtained makes no difference.
Decision is based not on number of documents but on principle
Whether a combined bill is obtained or two seperate bills for Installation Charges and Service TAx are obtained makes no difference.
Decision is based not on number of documents but on principle
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- About TDS & Income Tax
- Tax on Deemed Capital Gain
- Scrutiny and reopening of past returns
- F & O PROFIT REPORTING FOR AY 2026-27
- Booth for sales promotion
- Type of Capital Gain
- Regarding ITR filing with more value than showing in AIS/TIS
- ASMT-10 received from A O
- Rental income of jointly held property
- Accounting with Claude
- Difff in ais receipts and gst turnover
- ITR-3 File/Error Found
- Exiting partner in partnership firm in gst portal
- Taxability of credit in canara bank ET & T section (NRO)
- Consequences of Non-Deduction of TDS under Income Tax???????????????
- TDS on Rent received on redevelopment of building
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- Upload Level ValidationITR3Category of Defect B/D
- PF Taxable Income
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
