Can anyone give suggestions regarding accounting entry?
1) In company form 26AS one party shows
Amount paid/ Credited -441200
Tds deducted & Credited- 44120.
Assume that the above service provided by my company is liable to service tax @ 10.3% only.
Now what is the entry to be passed in my books and how much income is to be booked.
pls clarify amt 441200 includes service tax or not
Amount paid credited is inclusive service tax or exclusive ?
Assumed that Bill includes Service tax ::
Party A/c Dr 397080
TDS Receivable A/c Dr 44120
To Misc. Income 400000
To Output Service 41200
PARTY A/C DR. 397080 (= 44120*99.27/11.03)
TDS RECEIVABLE A/C DR. 44120
TO INCOME 400000 ( = 44120*100/11.03)
TO SERVICE TAX LIAB 41200 (= 441200*10.3/110.3)
Vinod sir is it feasible to debit TDS recievable at the time of accrual of income..wont it b right if we debit tds at the time of recieving the income?? thank u in advance.
Party Account Dr. 397080
TDS Receivable Dr. 44120
To Service Income Ac 400000
To Service Tax Payable Acc 41200
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