Student as well as Self-employed
3710 Points
Joined September 2007
okkk lets take an example for this...
suppose your bill details are as follows
gross commission - 5000.00
service tax @ 12.36% - 618.00
net total - 5618.00
CASE 1: CENVAT credit available
at time of booking expense
Commission A/c Dr. 5000.00
Cenvat Credit - Input A/c Dr. 618.00
To Creditor A/c 5618.00
at time of making payment
Creditor A/c Dr. 5618.00
To Bank A/c 5118.00
To TDS Payable A/c ( @ 10% on 5000.00) 500.00
CASE 2: CENVAT credit not available
at time of booking expense
Commission A/c Dr. 5618.00
To Creditor A/c 5618.00
at time of making payment
Creditor A/c Dr. 5618.00
To Bank A/c 5118.00
To TDS Payable A/c ( @ 10% on 5000.00) 500.00