Entry for rent received

Only for Rent TDS shud be made on the NEt amount exclusive of ST.  The following entry needs to passed:

PArty  Dr      102360

TDS Dr           10000

To-Rent Recd               100000

To- ST                                 12360

Since teh assessee is collecting ST on behalf of teh govt from the party & paying it to teh assessee it is not considered as his income.  Hence it shud be shown either as a liability or shall be shown as seperate item in the P&L on the receipts side and debit it t P&L after paying the P&L, so that effect would be Nil

To a great extent Mr. Giridhar clarified the same. Entries for Rental Income may appear as follows (with the example cited):

Party Debit Rs.100000

To Rental Income Rs.100000

On receipt of payment with ST and net of TDS

Bank Account Debit Rs. (90000+12360) 102360

TDS Recoverable-Rent Account  Debit Rs10000

To Party Account  Rs.100000

To Service Tax Payable Account Rs.12360

Since TDS Certificate may not be available on that moment but lator on, following effects also need to be accounted for:

On collection of TDS Certificate from the party:

Advance Income Tax Account Debit Rs.10000

To TDS Recoverable-Rent Account Rs.10000

* Advance Income Tax needs to be adjusted per relevant rules and procedures.