Labour Cess entry in books of accounts

1008 views 1 replies
If a govt organisation deducts 1% labour Cess
from vendor payment then
In the books of accounts of vendor how will this entry be done?
Replies (1)

In the books of accounts of the vendor, the entry for labour cess deducted by the government organization would be:

 Debit: Debtors (or Receivables) account = XXX (invoice amount) Credit: Sales account = XXX (invoice amount)

Debit: Labour Cess payable account = 1% of XXX (labour cess amount)

Credit: Debtors (or Receivables) account = 1% of XXX (labour cess amount) When the labour cess is paid to the government:

Debit: Bank account = 1% of XXX (labour cess amount) Credit: Labour Cess payable account = 1% of XXX (labour cess amount) 

Note: - XXX represents the invoice amount. - Labour Cess payable account is a current liability account. - Debtors (or Receivables) account represents the amount owed to the vendor.

 By passing these entries, the vendor accounts for the labour cess deducted by the government organization and pays the cess to the government.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
25 June 2026
AUDIT MANAGER

JDAS & ASSOCIATES

New Delhi

CA

View Details
Company
29 May 2026
Company Secretary - Part time

Shaswat initial support private limited

Ahmedabad

CS

View Details
Company
16 June 2026
Sr. Associate / Assistant Manager | TAS / FDD

Boutique Investment Bank & Transaction Advisory Firm

Gurgaon

CA

View Details
Company
ARTICLESHIP 18 June 2026
Article Assistance

RB KESHRI & CO.

Mumbai

CA Inter

View Details
Company
25 June 2026
Accounts & Taxation Executive

Dindukurthy & Associates

Hyderabad

MBA

View Details
Company
20 June 2026
Assistant Accounts Manager

Fintax Professionals

Gurgaon

CA Inter

View Details
Company
29 May 2026
Finance Head

Bhawar Sales Corporation

Chennai

Graduate (Any)

View Details
Company
22 June 2026
Finance Manager- Chartered Accountant

Triveni Turbine Limited

Bengaluru

CA

View Details