ranjitkarmakar (service) (303 Points)
12 November 2011Dear Seniors, Please help to pass the entry in the books of proprietorship firm as Contractor (Composition Scheme), a bill raise to Contractee (Project Owner) for Rs. 10,000/- . Service Tax 4.12% and DVAT 4% extra. How to pass the entry in the books of contractor. Please help me.
Devendra
(Chartered Accountant)
(4775 Points)
Replied 12 November 2011
Following entry should be passed:-
Sundry Debtor A/c Dr. 10000
To Sales A/c 9172
To Service Tax A/c (4.12%) 412
To VAT A/c (4%) 416
(Being bill raised)
Regards,
Devendra K
CA Sripal Jain
(Associate Finance)
(709 Points)
Replied 12 November 2011
casha/c...dr 10828
to service tax a/c 412
to vat payable a/c 416
to contractee a/c 10000
CA Sripal Jain
(Associate Finance)
(709 Points)
Replied 12 November 2011
mr devendra have passed the due entry and i have passed the cash entry...im not sure about the duty calculation ...i think it is wrong lets wait for others opinion
CA Fenil H. Doshi
(-)
(50 Points)
Replied 14 November 2011
According to me,
IF the bill is already raised or payment of Rs. 10000/- is already collected and then the bill is considered to be inclusive of Service Tax and Entry of Devendra is corrrect but if the bill is not raised or payment is not collected then you should raise the bill for RS 10828/- and collect Service Tax and pass entry as CA Sirpal Jain.
Hemanth Sai
(CA-FINAL,AUDIT TRAINEE)
(110 Points)
Replied 14 November 2011
I think this is a works contract nd we should calculate the vat and service taxes based on the proportion prescribed in the respective state act,
here as per the service tax rate mentioned by ranjit,it can be concluded that service proportion is 40% and we should calculate accordingly.
Contractee a/c Dr 10405
To sales a/c 10,000
To 4%Vat Tax 240
(10000*60%*4%)
To service Tax 165
Hemanth Sai
(CA-FINAL,AUDIT TRAINEE)
(110 Points)
Replied 14 November 2011
ohh..sorry i forget that the contractor is registered under the composition scheme of vat...so he cannot charge vat nor the vat credit so accordingly:
Contractee a/c Dr 10165
To sales a/c 10,000
To service Tax 165
Gajender Singh
(Accounatant )
(38 Points)
Replied 21 November 2011
party A/C dr.(sundry debtors)
to sale
to vat(vat on sale)
to service tax
(due)
bank/cash
to party
( receipt )
arun kumar
(accountant)
(21 Points)
Replied 15 December 2011
arre yaar look at here :
Debtor/Contractee A/C Dr.
WCT A/C Dr.
Advance TDS A/C Dr.
To Construction Sale Cr.
To Service Tax Cr.
CAclubindia
