SHEFALI (CA Final student) (54 Points)
15 June 2010what will be journal entry in the books of a labour contractor..............at the time of raising bill,when we are charging service tax and at the time of payment TDS is deducted by our customer...will TDS be charged on service tax also...what will be the journal entries at the time of payment and raising the bill.
CA VINAY BANSAL
(In job with KPMG)
(289 Points)
Replied 15 June 2010
enrty at the time of raising the bill:
Party A/c Dr
To Contract Income
To service Tax Payable
At the time of Receipt
Bank A/c Dr
TDS Receivable Dr
To party A/c
CA CS CIMA Prakash Somani
(Landmark Group)
(23502 Points)
Replied 15 June 2010
if YOU ARE MAKING PAYMENT UNDER SEC 194j THEN YES ON SERVICE TAX also tds need to be deducted
BUt under sec 194I - only on net amount i.e. tds shall not be charge on service tax
Entry provided above is fine...
NAVNEET MANDOWARA
(Accounting & Investments)
(100 Points)
Replied 16 June 2010
I AGREED WITH VINAY SIR...
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