Hi Friends,
Eg:- Suppose Mr A. Provide professional service to Mr.B.
Kindly tell me that what will be the entry for the above transaction on both the books (ie:- Treatment of service tax while sending invoice to Mr. B and TDS while making payment to Mr. A)
HI Bijoy,
entries as follows,
|
In the Book of Mr.A |
|||
|
S.No |
Particulars |
Debit |
Credit |
|
Invoice Entry |
|||
|
1 |
Mr.B a/c Dr |
110 |
|
|
To Professional Income A/c |
100 |
||
|
To Service Tax payable A/c |
10 |
||
|
Receipt Entry |
|||
|
2 |
Bank A/c Dr |
100 |
|
|
TDS on Sales A/c Dr |
10 |
||
|
To Mr.B A/c |
110 |
||
|
Duties payable |
|||
|
3 |
Service Tax payable A/c Dr |
10 |
|
|
To Bank A/c |
10 |
||
|
In the Books Of Mr.B |
|||
|
Invoice Entry |
|||
|
Legal & Profession a/c Dr |
110 |
||
|
To Mr. A A/c |
110 |
||
|
Payment Entry |
|||
|
Mr.A a/c Dr |
110 |
||
|
To Bank A/c |
100 |
||
|
To TDS on profession a/c |
10 |
||
Regards,
Ranjith
| Originally posted by : Ranjith kumar | ||
 |
HI Bijoy, entries as follows, In the Book of Mr.A S.No Particulars Debit Credit Invoice Entry 1 Mr.B a/c Dr 110 To Professional Income A/c 100 To Service Tax payable A/c 10 Receipt Entry 2 Bank A/c Dr 100 TDS on Sales A/c Dr 10 To Mr.B A/c 110 Duties payable 3 Service Tax payable A/c Dr 10 To Bank A/c 10 In the Books Of Mr.B Invoice Entry Legal & Profession a/c Dr 110 To Mr. A A/c 110 Payment Entry Mr.A a/c Dr 110 To Bank A/c 100 To TDS on profession a/c 10 Regards, Ranjith |
 |
Hi,
Then what will be the effect of TDS on Sales in Balance Sheet.
In the year end Finalisation, we have adjusted TDS on Sales to income Tax
Income Tax for FY 10-11 A/c Dr 10
To Tds on Sales A/c 10
Thanks Ranjith,
One more Question?
Incase TDS and SErvice tax rate is different then amount will be different. Then please explain the above example once again with ST on 10.3% and TDS on 5%.
|
In the Book of Mr.A |
|||
|
S.No |
Particulars |
Debit |
Credit |
|
Invoice Entry |
|||
|
1 |
Mr.B a/c Dr |
110.3 |
|
|
To Professional Income A/c |
100 |
||
|
To Service Tax payable A/c |
10.3 |
||
|
Receipt Entry |
|||
|
2 |
Bank A/c Dr |
104.785 |
|
|
TDS on Sales A/c Dr |
5.515 |
||
|
To Mr.B A/c |
110.3 |
||
|
Duties payable |
|||
|
3 |
Service Tax payable A/c Dr |
10.3 |
|
|
To Bank A/c |
10.3 |
||
|
In the Books Of Mr.B |
|||
|
Invoice Entry |
|||
|
Legal & Profession a/c Dr |
110.3 |
||
|
To Mr. A A/c |
110.3 |
||
|
Payment Entry |
|||
|
Mr.A a/c Dr |
110.3 |
||
|
To Bank A/c |
100 |
||
|
To TDS on profession a/c |
5.515 |
||
|
Year End Posting |
|||
|
Income Tax for FY 10-11 A/c Dr |
5.52 |
||
|
To Tds on Sales A/c |
5.52 |
||
Thank you so much for clarifying My doubt.............
Always welcome 
Hi,
Can any one help me out regarding Professional Tax Treatment (Accounting as well as Taxation Part)
CAclubindia
