Accounting entry in case of tds on rent

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 ????

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/-

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

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                                                             

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

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

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