a cheque is bounce in the bank charges for that 120.00 and service tax is 14.00
now how to pass the entry for above transation
a total entry under bank charges or sarapate entry for bank charges and service tax
a cheque is bounce in the bank charges for that 120.00 and service tax is 14.00
now how to pass the entry for above transation
a total entry under bank charges or sarapate entry for bank charges and service tax
The total of the two amounting to Rs.134/- may be booked under the head Bank Charges.
Ya u can book both the amount under the head "BANK CHARGES"
YEs... agreee with divya.... And my friend entry is .....
Bank charges Dr. 134
To Bank account
According to me, if u can take service tax credit, the entry will be
Bank Account Dr 120.00
Service Tax Input Dr 14.00
To Bank 134.00
u cannot take the service tax input in such case
Service Tax levied on this bank charges ? can any one explain this is it service tax or some service charges
| Originally posted by : sivaram | ||
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Service Tax levied on this bank charges ? can any one explain this is it service tax or some service charges |
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Service Tax is Charged by Bank....as Bank Services are also covered under service tax act
U can account it as bank charges....
See there are two ways depending on the accounting of the firm
1- Take the full amt in abnk charges and pass entry
Bank / Finance charges Dr
To Bank A/c
2- In case , if the firm is registered under service tax and taking the credit of service tax in normal course then
Bank / Finance charges Dr
Service tax input a/c Dr
To bank a/c
Ya i agree with Anshika...
comprehensive Reply.
Agreed.
| Originally posted by : Anshika | ||
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See there are two ways depending on the accounting of the firm 1- Take the full amt in abnk charges and pass entry Bank / Finance charges Dr To Bank A/c 2- In case , if the firm is registered under service tax and taking the credit of service tax in normal course then Bank / Finance charges Dr Service tax input a/c Dr To bank a/c |
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You can claim service tax credit only if the service has been utilised in relation to manufacture.
In this can the entire amount to be debited to Bank charges a/c
If u are registered under Service Tax then, Service Tax input can be claim, if not, then total amount has to be book under bank charges
Bank Charges A/c. Dr. .................134.00
To Bamk A/c. 134.00
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