A Branch Office X forgets to take the Service Tax Input on Audit fees, the head office B takes the Service Tax Input on behalf of the Branch Office in its Books of Accounts, then what is the JV to be passed in the Head Office B's Books and the Branch Office A's Books?
Please guide.
Regards, Devendra
if audit fees has taken in branch full with considering service tax means full Amt as expense & then after only input service tax has in account in Head office u have to use below JV
in branch books of A/c
to Transfer input service tax from Audit fee
1. Input Service Tax A/c................Dr[only service tax part]
Audit Fee.........................Cr
adjustment entry with headoffice
Head Office A/c..........Dr
Input Service tax a/c...........Cr [only service tax amount]
in the books of Head office
Input service tax.........Dr
Branch A/c..................Cr
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