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-
