What is the journal entry for rent paid, how to applicable service tax and tds

Service Tax (Legacy) 2426 views 4 replies
Tell me the journal entry for rent paid
Replies (4)
rent paid
to cash/bank

p&l
to rent paid.

Further, if you are availing input service credit, split rent into rent a/c and input service account a/c

Rent paid account Dr 

Service tax (input ) Dr 

     to bank account 

     to TDS account 

(being rent paid after deduction of TDS) 

TDS account Dr 

    To bank account 

(on deposit of TDS with CG)

Profit and loss account Dr 

    To rent paid account 

( transfer to profit and loss account ) 

Practically, the credit is given to a Payable A/c. The Rental expenses should be booked (Dr.) as & when the rent becomes due (AS 1) depending upon the agreement.

The Payable should be knocked off (Dr.) as & when the cheque is drawn.


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