Journal Entries for Different Expense and Income Bills for Service Providers

Service provider gets input of Excise and Service Tax on Expense Bills
This Input is called Cenvat

It is normally of 3 types

Note:-

No Input is available of
1. Vat on Purchases and Expenses
2. CST on Purchases and Expenses
3. Swachh Bharat Cess on Expense Bills

Since no Input is available of these 3,we do not make their Input accounts

SERVICE TAX ENTRIES ASSIGNMENT 

Following are Expense and Incomes Bills of a Service Provider.

Questions:-

Pass Entries

DETAILS OF PURCHASES

-a-

Entry

Purchase A/c Dr 31500
               To A 31500

-a-

Entry

Purchase A/c Dr 450000
                To B 45000

-a-

Entry

Purchase A/c Dr 52812.5
Input Excise(Cenvat on Inputs) Dr 6250
                                To C 59062.5

DETAILS OF EXPENSES

-a-

Entry 

Printing Expense Dr 3150
                  TO D 3150

-a-

Entry

Maintenance Expense Dr 4200
                   TO E                4200

-a-

Entry

Internet Expense Dr 3015
Input Service Tax (Cenvat on Input Services) Dr 420
Input KKC (Cenvat ion Input Services KKC) Dr 15
                           To Airtel 3450

For Swachh Bharat Input,we do not make account as we do not get any cenvat.However for KKC,we get Input,hence we make its account

-a-

Entry

Professional Expense Dr 10050
Input Service Tax (Cenvat ion Input Services) Dr 1400
Input KKC (Cenvat ion Input Services KKC) Dr 50
                                       To Max and Co 11500

For Swachh Bharat Input,we do not make account as we do not get any cenvat.However for KKC,we get Input,hence we make its account,we need to show KKC separately in return,so we show it separately in entry also.

-a-

Entry

Machine Dr 31500
             To F 31500

-a-

Entry

Machine Dr 40800
               To G 40800

-a-

Entry

Machine Dr 84500
Input Excise on Machines 1/2(Cenvat on Capital Goods Current Year) 5000
Input Excise on Machines 1/2 Deffered (Cenvat on Capital Goods Deferred) 5000
                                  To H 94500

Entry in Next Year

Input Excise on Machines 1/2(Cenvat on Capital Goods Current Year) Dr 5000

    To Input Excise on Machines 1/2 Deffered (Cenvat on Capital Goods Deferred) 5000

-a-

Entry

Repair and Maintenace A/c Dr 2112.5
Input Excise on Machines 1/2(Cenvat on Capital Goods Current Year) 125
Input Excise on Machines 1/2 Deffered (Cenvat on Capital Goods Deferred) 125
                                   To H 2362.5

Entry in Next Year

Input Excise on Machines 1/2(Cenvat on Capital Goods Current Year) Dr 125

    To Input Excise on Machines 1/2 Deffered (Cenvat on Capital Goods Deferred) 125

SALES BILLS

-a-

Entry

X Dr 161000
           To Professional Services Income140000
           To Output Service Tax 19600
          To Output Swachh Bharat Cess 700
          To Output Krishi Kalyan Cess 700

Note:
For Swachh Bharat Input,we do not make account as we do not get any cenvat.However for Output,we have to make account as we have to pay it

-a-

Entry

X Dr 115000
       To Consultancy Services Income100000
       To Output Service Tax 14000
       To Output Swachh Bharat Cess 500
       To Output Krishi Kalyan Cess 500

Note:
We have to show all component of Service tax separately so that it is easier to get data to file challan and return