Dear All,
A company has to pay a monthly rent of Rs.1,00,000/-. Kindly pass JV for the same which should disclose TDS & Service Tax in one single JV.
Rohit Kumar Singh
(Student CA Final )
(37 Points)
Replied 29 December 2012
Dear Sowmya S
Following is will be the entry for the JV:-
Rent A/c Dr
To Rent Payable
To Tds (194-I) Payable
To Service Tax Payable
After this entry for payment you can pass this entry:-
1. Rent Payable A/c Dr
To Bank/ Cash
2. Tds (194-I) Payable Dr
To Bank/Cash
3. Service Tax Payable Dr
To Bank/Cash
S Gupta
(Finance Manager)
(92 Points)
Replied 29 December 2012
Hi,
rent a/c dr
tds on rent payable cr
service tax payable cr
bank / cash cr
Sowmya S
(CAO)
(214 Points)
Replied 29 December 2012
Dear Rohit,
My query is whether the Rent A/c has to be debited to Rs.1,12,360/-(including ST)?
S Gupta
(Finance Manager)
(92 Points)
Replied 29 December 2012
Hi
what is the condition in your agreement entered with the owner
if the condition as per agreement rent includes service tax or excludes service tax if includes rent amount divided by 112.36 x 12.36= service tax amount other wise rent amount x 12.36 = service tax amount.
Rohit Kumar Singh
(Student CA Final )
(37 Points)
Replied 29 December 2012
Dear,
It depends on whether youwant to take credit of service tax or not.If you donot wish to take credit of service tax then debit the whole amount of rent including service tax & if you wish to take credit then record the servitax paid by you in Service tax credit receivable account as an asset.
Note: As per applicable laws no tds is required to be deducted on the value of service tax in the bill, you need to deduct the tds on the value of rent i.e. 1,00,000.
For further queries please revert back or mail me at rohit_sim123 @ yahoo.com
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