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Service tax bill entry

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I am a b.com student working in a proprietor firm, a VAT/TIN/CST registered dealer. I have received a service tax @ 14% bill for customisation of tally software. Please guide me how to pass this purchase/ expense entry alongwith respective accounting head.
Replies (4)

Please specify the mode of Payment, Cash / Bank /  Due to the party

 

its due to the party. please specify accounting heads for journal entry.

Computer Expenses A/c Dr. (Final Amount of the bill to be taken here)

Party A/c Cr, (Final Amount of the bill to be taken here)

1. Was your concern have the Service tax registretion ?

If your concern have service tax liability you can claim this amount as input other wise, showing the entire amount as expenditure is good enough.

 


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