Service Tax is not used anymore
Please check GST - https://www.teachoo.com/gst/
Example 5
Payment Made in Advance
The Company entered into connect with Max Ltd on 25 April for 100,000+ Service Tax 15%
20% paid in advance on that date to Max Ltd
Bill Received on 10th June from Max for Consultancy Service
Balance 80% Paid on 28 October
Pass Entries assuming no TDS
View answer
Entry is different in both cases as shown below
|
Not Taking Input |
Taking Input |
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Entry for Advance Paid
Max Dr 23000 To Bank 23000 (115000*20%) |
Entry for Advance Paid
Max Dr 23000 To Bank 23000 (115000*20%)
Input Service Tax 2800 Input KKC 100 To Max 2900 (Max has to issue a Invoice for Advance Received, on basis of which we can take Input) |
|
Entry for Bill Received Consultancy Exp Dr 115000 To Max 115000
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Entry for Bill Received Consultancy Exp Dr 100500 Input Service Tax 11200 Input KKC 400 To Max 112100 |
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Entry for Balance Payment Max Dr 92000 To Bank 92000 (115000*80%)
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Entry for Balance Payment Max Dr 92000 To Bank 92000 (115000*80%)
|
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Example 6
Pass Entry in Example 5 assuming TDS is Deducted?
-a-
|
Not Taking Input |
Taking Input |
|
Entry for Advance Paid
Max Dr 23000 To Bank 21000 To TDS 2000 (2000*10% TDS=2000) |
Entry for Advance Paid
Max Dr 23000 To Bank 21000 To TDS 2000 (2000*10% TDS=2000)
Input Service Tax 2800 Input KKC 100 To Max 2900 (Max has to issue a Invoice for Advance Received, on basis of which we can take Input) |
|
Entry for Bill Received Consultancy Exp Dr 115000 To Max 107000 To TDS 8000
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Entry for Bill Received Consultancy Exp Dr 100500 Input Service Tax 11200 Input KKC 400 To Max 104100 To TDS 8000 |
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Entry for Balance Payment Max Dr 84000 To Bank 84000 (107000-23000)
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Entry for Balance Payment Max Dr 84000 To Bank 84000 (104100+2900-23000)
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