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Accounting entry in case of tds on rent

Sumit Agarwal (Article Assistant (CA-Final)) (393 Points)

15 November 2012

Hello, Can any one tell me, what will be entry to be passed in the follwing case in the books of both X & Y ? Mr,X Received Invoice of Rent from Mr Z Rs 220000 Service Tax 12.36%

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7 Replies

CMA RAVI (ASSISTANT MANGER - FINANCE) (478 Points)
Replied 24 December 2012

Originally posted by : Sumit Agarwal
	Hello, Can any one tell me, what will be entry to be passed in the follwing case in the books of both X & Y ? Mr,X Received Invoice of Rent from Mr Z Rs 220000 Service Tax 12.36%

YOUR QUESTION IS MISSING SOMETHING ... THERE ARE THREE PARTIES TO CONTRACT ????

Sonu Kumar (Account Manager) (665 Points)
Replied 25 December 2012

In Books of Mr. X-----

Rent A/c Dr. 220000 -

Service Tax Input Credit Dr--27192

To Bank Ac- 222473

To TDS A/c - 24719/-

Sonu Kumar (Account Manager) (665 Points)
Replied 25 December 2012

In Books of Mr Z.....

Bank A/c - Dr 222473

TDS A/c - Dr 24719

To Mr Rent A/c 220000

To Service Tax Payble ac - 27192

Jiral Savla (Senior) (35 Points)
Replied 08 January 2013

As per circular no.4/2008 dated 28/04/2008 it was clarified that TDS on rental payment would be required to be made only on the basic rental Without including Service tax.

In the books of X

Rent A/c Dr 2,20,000

Service Tax Input Credit Dr 27,192

To TDS on Rent 22,000

To Bank 2,25,192

CA D.C. Bansal (Accounts Head) (283 Points)
Replied 09 January 2013

In the books of Mr.X

Rent A/c.................................Dr. 2,20,000/-

Service Tax Receivable.........Dr. 27,192/-

To Mr. Z/Rent Payable 2,25,192/-

To TDS on Rent 22,000/-

Please note that if the payment of Rent is not related to input services then the service tax has to be debited to Profit & Loss A/c

srividyakaranam (accounts assistant) (22 Points)
Replied 08 December 2014

hello ,

what is the accounting entry for rent payable, invoice is of 27966.40

service tax is 2796.40 and rent to be paid is 25170.. what is the entry for this..please anyone help me

srividyakaranam (accounts assistant) (22 Points)
Replied 08 December 2014

hello,

it is pvt ltd company of 500000 eq shares of rs 10 each and directors are paid share amount through bank.. what is the accounting entry for paid up capital ,how should i treat without effecting bank closing balance