Accounts entry for services rendered in March

Don't we normally do account entries of the basis of "Invoice Date" and not on the basis of date when the services were rendered ?

Originally posted by : manik jain
	I think,services will be recognised in the year in which it is provided on basis of accrual concept

first if u r asking from service tax point of view...

Its simple u have to pay service tax on advance or invoice date whichever is early

now if u asking about income.

if the contract is very clear that u can get the payment without any provisions..

and u sure about the payment..

then u can book in the current year on accrual basis...

i think u will understand.. still if u have doubt please ask a bit clearly i will answer

Thanks Ankit.

Service tax is not applicable here so it's more about which finanacial year this income will be considered in - 2013/2014 OR 2014/2015  ?

As I said Invoice date will be 2nd April on invoice but invoice will have a line item saying that it is for services rendered to client for the month of feb/march 2014.

I actually want to book it in next financial year.

Let me know.

Regards,
Divya

Than u must account of this in current year...as services is provided by u in this current year and the point of income is created and completed in the current year iteself.. so it should b a part of current year profit....

Service tax is not applicable on this .... as madam said.............

But why do you want to show the service rendered of the previous year to be shown in the current year, is it to avoid anything. Please clarify, I dont think it is advisable.

Income will be fall in 2014-2015. As pe conservatism concept only future loss shall be accounted. 

Invoice date is irrelevant for accounting. Revenue recognition should happen based on competion of service. In this case it should happen in the financial year 2013-14.

Since the services rendered to outside India - Service Tax is not applicable and hence no service tax liability to be paid to govt.

Please pass the journal entry for the same, when service performed and in next year when. Invoice issue