Accounting entry for service tax with vat

A/c entries 6149 views 8 replies

Dear 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.   

Replies (8)

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

casha/c...dr  10828

            to service tax a/c  412

            to vat  payable a/c  416

            to contractee a/c      10000

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

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.

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

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

 

party A/C dr.(sundry  debtors)

to sale 

to vat(vat on sale)

to service tax

(due)

bank/cash

to party 

( receipt ) 

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.


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