What will be the service tax in half payment received in adv

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This query is : Resolved

RAJEEV PANDEY (Querist)

15 March 2014 if company raise an invoice and received 50% of payment in advance then what will be the service tax should pay on the next due date by the company is it half service tax or service tax on whole amount of the invoice and what will be the journal entry when book the invoice in tally.

please reply with appropriate example.

thanks in advance

CA Ravi Kumar Murugesh

CA Ravi Kumar Murugesh (Expert)

15 March 2014 Eg:
Invoice amount : Rs.10000
Service tax : Rs. 1236
Total Invoice : Rs.11236

Received amount : Rs.5618

Entry in tally:
while raising invoice:
Dr : ABC& co : 11236
Cr : Service tax payable : Rs.1236
Cr : Income : Rs.10000

Reciept for Rs.5618
Dr : Bank Rs.5618
Cr.: ABC&co : Rs.5618

payment of service tax:
Dr: Service tax payable : Rs.1236
Cr: Bank : Rs.1236

Thus the balance o/s from ABC & Co:Rs.5618

RAJEEV PANDEY

RAJEEV PANDEY (Querist)

16 March 2014 Thanku so much sir........

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