Can anyone explain

 ORIGINAL BILL AMT

Professional Fee to be recd from client

Service tax payable by client

Conveyance receivable from the client

Total Bill

Actual Amount Received from the client via cheque

TDS Amt

Remark

Service Tax Paid

DONE BY

BAD DEBTS

ADJUSTMENT
SERVICE TAX

SHORT PAYMENT (IN RS. )

            168,540

150000

18540

 ******

168540

151686

16854

CHQ NO ……..

 

 

 

16854

 

Can anyone explain the whole concept with accounting entries.

 

Replies (10)

Entry of Reciept

Client's Account     [Debit]  168,540

To TDS                [Credit]   16,854

To Bank Account   [Credit]    Balance

 

Hello

TDS had been deducted on the whole value Rs.1,68,540/-, instead of deducting on the bill value

The accounting entries at the time of raising Bill

Fees Received               Cr. 150,000/-

Service Tax receivable    Cr.  18,540/-

Name of the Client          Dr. 168,540/-

 

At the time of receving the amount

Name of the Client                Cr.168,540

TDS                                     Dr.  16,854

Bank account (on collection)   Dr 151,686

While paying service tax, Service tax collection account will be debited.

Regards

CA  R. KANDASAMY

 

 

 

Dear amrit singh (Killer Student) :-D

Please clear your accounting concept before misguiding others...

CA R.KANDASAMY, Thank you for the right answer...

Agree with Ca R.Kandasamy sir.....that is perfect accounting entry.
Entry above is correct, Only Service Tax Payable account will BE use instead of Recievable. Because Here it is our liablity to pay to the government service tax which recieved from the client.
Originally posted by : CA R.KANDASAMY
Hello

TDS had been deducted on the whole value Rs.1,68,540/-, instead of deducting on the bill value

The accounting entries at the time of raising Bill

Fees Received               Cr. 150,000/-

Service Tax receivable    Cr.  18,540/-

Name of the Client          Dr. 168,540/-

 

At the time of receving the amount

Name of the Client                Cr.168,540

TDS                                     Dr.  16,854

Bank account (on collection)   Dr 151,686

While paying service tax, Service tax collection account will be debited.

Regards

CA  R. KANDASAMY

 

 

 

Thanks A Lot.......

I also do the same but somehow needs confirmation.

Ur advice really helps me a lot......

Thanks to all of u tooooo......... 

Now, what would u do in the given case: " When Cheque Recd. From Client = Rs. 2850 only "


Please mention what would be the amount ( If Any ) in place of " ? "...........


ORIGINAL BILL AMT

Professional Fee TO Be Recd. From Client

Service Tax Charged On Client

Conveyance Amt. Receivable

Total Bill Given To The Client

Actual Amount Received From The Client

TDS Amt

Service Tax Paid

BAD DEBTS

ADJUSTMENT
SERVICE TAX

SHORT PAYMENT (IN RS. )

9427

7500

927

1000

9427

2850

?

 ?

 ?

?

 ?

if you dont want to spilt the entry and want to do the single one then it should be like this:-

Bank A/c          Dr          151686

TDS                 Dr            16854

                To Professional Fee Income A/c           150000

                 To Service tax Payables A/c                   18540

Originally posted by : ish kumar sharma
if you dont want to spilt the entry and want to do the single one then it should be like this:-

Bank A/c          Dr          151686

TDS                 Dr            16854

                To Professional Fee Income A/c           150000

                 To Service tax Payables A/c                   18540

thank you.......

I agree with Mr Kandasamy 100%.

 

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