Entries for service tax

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

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...

I AGREED WITH VINAY SIR...