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Service tax_customer

486 views 2 replies

Bijoy

SAP FICO

48 Points Posted on 31 January 2013

Hai Experts;

A Software comapny is making below mentioned entry for service provided:

Dr. Customer

Cr. Service Tax Collected (12.36%)

Cr. Revenue

Once received the Cheque, entry would be;

Dr. Bank

Cr. Customer

Cr. TDS on consulting (10%)

Payment of Service Tax to Govt:

Dr. Service Tax Collected (12.36%)

Cr. Bank

whether these entries are enough for sales?

Also, once the TDS rcvd frm Customer, what we will do?

i can forward with thses entries?

Waiting an Expert opinion

Replies (2)

Sonu Kumar

Account Manager

665 Points Posted on 31 January 2013

You will Made TDS entry While Booking of Bill in Your Books of accounts not at the time of Receiving the payment........................... TDS so Deducted will be pay in Govt Account at 7th in Following Month.... and TDS return Filed Quarterly

Bijoy

SAP FICO

48 Points Posted on 31 January 2013

Thanks for Reply

But, while recording sales, we are crediting service tax. Also, once receiving payment, customer will deduct tds and issuing TDS to us. So is there any relation betwwen these two.

Since customer is deducting TDS, they will make pymt to gvt.

Any experts can provide complete cycle for this business scenario?