tds details

After Deduction of TDS: In this also some critiria is there .  If that is Section 194I, we cannot consider Service Tax for inclusion of TDS.  But other Sections like 194A,B,C,D,G,H we must consider to cut TDS including Service Tax.

Accounting Entry

Accounts Payables to Suppliers A/C DR 10,000

   To Service Tax                                                  1000

   To TDS Payable                                               1000

   To Bank                                                              8000

this is the entry

In my opinion there needs some modification in the above entry.

In case the recepient of service is also a service provider who collects service tax on the out-put services, the entry shall be as below.

Account Head (Nature of Expenditure) A/c Dr.                       xxxxx

Service Tax Credit A/c Dr.                                                           xxxxx

To TDS Payable A/c                                                                                      xxxxx

To Bank / Vendor A/c                                                                                   xxxxx

However, if in case the recepient of service is not a service provider or who doesnt collect service tax on the out-put services, the entry shall be as below.

Account Head (Nature of Expenditure) A/c Dr.                       xxxxx

(The amount is inclusive of Service Tax)

To TDS Payable A/c                                                                                      xxxxx

To Bank / Vendor A/c                                                                                   xxxxx

amol is right

Pls. check Service Tax  paid as per Service Receiver, is Service Tax payble, otherwise we can avail the Credit of the Service, by what amol advised