Anybody expert are here

It's correct.

Thank for reply

yes entry is correct.

It will be better if anyone explain it in detail

the total Audit Fee including ST is the expense incurred by the co, hence the gross amount is charged to P&L.

Now out of this total amt, as TDS is applicable on it 10% of it will go the govt & remaining 90% will be paid to the Auditor.

So while taking the same to the B/s 10% will be shown as TDS payable & remaining 90% will be shown as o/s to the Auditor's laibility A/c whihc whill be paid in the subsesquent year..

I AGREE WITH GIRIDHAR :)

I think instead of booking entire amount as Audit Fee, its better to recognise Audit Fee and Service Tax separately, so as to ensure better disclosure

suggested entry is

Audit Fee (Professional Charges) A/c dr

Service Tax (Rates & Taxes / Duties & Taxes)

    To Audit Fee Payable A/c

    To Tds Payable

In this scenario also, entire amount is booked as expense i P& L A/c, but under different groupings

Hi,

Firstly you need to identify weather you can avail Service Tax or not. There would be 2 cases

CASE 1 :  Where you can avail Service Tax

Audit Fee (Expense) A/c Dr

Service Tax Available Provision (Asset A/c)  Dr

    To Audit Fee Payable (Liability) A/c

    To Tds Payable 194J (prof/tech) (Liabilty) A/c

CASE 2 :  Where you can not  avail Service Tax

Audit Fee (Expense) A/c Dr

Service Tax (Rates & Taxes  Expenses A/c)  Dr

    To Audit Fee Payable (Liability) A/c

    To Tds Payable 194J (prof/tech) (Liabilty) A/c

For  any further assistance pls feel free to cantact

thanks jai

for a better and deeper explanation
 

jai kukreja is right in all respect ...well done keep it up

Thanks Akash

Thanks every one

In case 2, where service tax is no cenvatable, it should be debited in the same account where the relative service is debited.

Take an example of fixed assets. If the cenvat (indirect taxes) billed are not cenvatbale, they are debited to the cost of asset.

Similarly, in case of purchase of Goods. If the sales tax is not cenvatable. purchase account is debited inclusive of taxes.

Conclusion:

Audit Fee (Expense) A/c Dr

    To Audit Fee Payable (Liability) A/c

    To Tds Payable 194J (prof/tech) (Liabilty) A/c

i want to avail service tax input so let me know.....can we do provision for service tax...

If you want to avail input credit, then debit service tax portion in cenvatbale account of balance sheet.