pass a entry

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
	Service Tax levied on this bank charges ? can any one explain this  is it service tax or some service charges

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
	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

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

ya agree with all