What accounting entry to be passed for tds & service tax

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.

Replies (6)

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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