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Case 1

Suppose our company provided Maintenance Services of 100000+15% Service Tax to RK Associates

Pass entry for Issue oi bill and Payment

(Assume no TDS Deducted)

-a-

Bill Issue

RK Associates Dr 115000

         To Maintenance Charges Income 100000

         To Output ST                                   14000

         To Output SBC                                     500

          To Output KKC                                   500

(14% Service Tax,0.5% Swachh Bharat and 0.5% KrishiKalyan Cess should be ideally shown separately)

 

Amount Received

Bank Dr   115000

        To RK Associates 115000

   

-ea- 

Case 2

Resolve last question assuming TDS @ 2% Deducted

-a-

Gross Amount excluding Service Tax=100000

TDS=2% of 100000=2000

 

Entry

RK Associates Dr 115000

         To Maintenance Charges Income 100000

         To Output ST                                   14000

         To Output SBC                                     500

          To Output KKC                                   500

(14% Service Tax,0.5% Swachh Bharat and 0.5% KrishiKalyan Cess should be ideally shown separately)

 

Amount Received

Bank Dr   113000

TDS Receivable 2000

        To RK Associates 115000

-ea- 

 

About the Author

CA Maninder Singh's photo - Expert in Practical Accounts, Taxation and Efiling
CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 6 years. He provides courses for Practical Accounts, Taxation and Efiling at teachoo.com.
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