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Example 1 Only Service Tax, No TDS
Suppose Bill Received on 10 June
Max Ltd
Consultancy Charges 1000000
Add
Service Tax @14% 14000
Swachh Bharat Cess @ 0.5% 500
Krishi Kalyan Cess 500
Total 115000
Payment made on 19 August
What is the entry assuming no TDS
-a-There can be 2 Cases
Our Company is taking Input of Service tax(We are Service Providers registered in Service tax or Factory Registered in Excise)
Our Company is not taking Input of Service tax (We are a Vat Dealer or a NGO)
Entry is different in both cases as shown below
|
Not Taking Input |
Taking Input |
|
Consultancy Exp Dr 115000 To Max 115000 |
Consultancy Exp Dr 100500 Input Service Tax 14000 Input KKC 500 To Max 115000 |
|
Entry for Payment
Max Dr 115000 To Bank 115000
|
Entry for Payment
Max Dr 115000 To Bank 115000
|
Example 2 Service Tax with TDS
Suppose in Example 1 ,TDS @ 10% is also applicable under 194J
Pass entry
-a-In both cases,TDS will be deducted @ 10% on 100000=10000
Entry is different in both cases as shown below
|
Not Taking Input |
Taking Input |
|
Consultancy Exp Dr 115000 To Max 105000 To TDS u/s 194J 10000
|
Consultancy Exp Dr 100500 Input Service Tax 14000 Input KKC 500 To Max 105000 To TDS u/s 194J 10000 |
|
Entry for Payment Max Dr 105000 To Bank 105000
|
Entry for Payment Max Dr 105000 To Bank 105000 (115000-10000) |
