Accouting Entry

hi i think nikita is right

hi friends,

what is the procedure to activate service tax and TDS rates, in which tally 7.2 calculated automatically 

Well the entry in books of Service receiver should be like this :

Professional Charges -Dr.                                             10000

Input Sevice Tax A/c    -Dr.                                                 1236

              To Party A/c                                                                                11236

Party A/c                         -Dr.                                              11236

               To Discount Rec.                                                                     562

               To Bank                                                                                     10674

In the Books of Sevice Provider :

Party A/c                                   -Dr.                   11236

                To Professional Receipt                                                     10000

                 To Service Tax Payable                                                       1236

Bank A/c                                  -Dr.                    10674

Discount Allowed                  -Dr.                      562

                        To Party A/c                                                                      11236

1.In Sevice Tax Act the tax will be charged the bill amount regarded as your Gross Tax Liability therefore by no means you directly increase/decrease your Party A/c or the ST liability on it

2.As per ST Act even if you have received less payment on a bill and you regard it as final settlement then you will be liable to pay your full tax liability as discount is your private affair and not revenue authorities headache

First of all that road construct on the Government Land, ok On what basis you construct road on the land.  It you took land on lease from the Government, you can not capitalise the Road.  Or else, because you are getting some fee viz tollplaza and other things you get some income on that.  In this you can follow the works contract.  The Government granting the land to the company on that compnay land you construct road for the fesibility of infrastructure development  you can capitalise.

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benjonson

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