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M R Singhal (Consultant)     27 September 2011

Provided service with service tax,received payment-tds dedu

We have provided our Manpower Recruitment Services to XYZ Company and raised invoice as below :

Placement Cosnultancy charges               :35217.00

Service Tax @ 10%                                        :  3522.00

Education Cess @ 2%                                :     70.00

Sec. Education Cess @ 1%                       :      35.00

Total Amount                                                 :  38844.00

We received payment of34960.00 after deduction of TDS of 3884 by the party i. e. XYZ Company.  How to show this Payment receipt entires in Tally.ERP 9, please explain so that all entries related to Sales, Bank, Service Tax, Education Cess, Sec. Edcuation Cess, TDS etc. are taken care of.  Please guide me.



 4 Replies

ashish gupta

ashish gupta ( student)     28 September 2011

1. At the time of raising invoice

XYZ Co. A/c Dr.                             38844

To Consultancy Charges           35217         

To Service Tax Payable               3522

To Education Cess payable            70

To SHE Cess Payable                      35

 

2. At the time of receipt

Bank A/c Dr.                                     34960

TDS Receivable A/c Dr.                   3884

      To XYZ Co,                                  38844

ACCOUNTANT

ACCOUNTANT (Student)     28 September 2011

 

The issue of TDS on service tax is getting hotter by the day. This issue got fuel with the issuance of a circular by the CBDT. In this circular, board has clarified that tax deduction at source (TDS) under sections 194-I of Income Tax Act would be required to be made on the amount of rent paid/payable without including the service tax. [Circular no. 4 dated 28-4-2008]

After this clarification, every body was of the view that the principle enunciated by this circular is applicable to all the payments made by the assessee and accordingly no TDS is deductible from on the part of service tax whether it is professional's bill or contractor's bill.

1 Like
Ateeq

Ateeq (CA - Final)     10 October 2011

Originally posted by : ashish gupta

1. At the time of raising invoice

XYZ Co. A/c Dr.                             38844

To Consultancy Charges           35217         

To Service Tax Payable               3522

To Education Cess payable            70

To SHE Cess Payable                      35

 

2. At the time of receipt

Bank A/c Dr.                                     34960

TDS Receivable A/c Dr.                   3884

      To XYZ Co,                                  38844

 agreed with ashish.

Akhilesh Kumar

Akhilesh Kumar (Accounts Manager)     27 December 2014

Dear all,

I am totally agreed with Mahal and i also want to know the entry as per new circular by CBDT.

also want to know that only applies on RENT or on all Heads?

Please suggest a entry as per new rule for the same entries above mentioned. 

Thanks with Regards

 

 


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