GeekInterview.com
  I am new, Sign me up!
 
GeekInterview.com  >  Interview Questions  >  Accounting
Go To First  |  Previous Question  |  Next Question 
 Accounting  |  Question 152 of 178    Print  
Service Tax
How to pass a JV when we receive bill including service tax? How to close this a/c?


  
Total Answers and Comments: 2 Last Update: April 21, 2009     Asked by: lathamurthy97 
  
 Sponsored Links

 
 Best Rated Answer

No best answer available. Please pick the good answer available or submit your answer.
January 16, 2009 00:51:08   #1  
deepak3218 Member Since: January 2009   Contribution: 2    

RE: Service Tax
Service Tax is to be paid on services used by the company eg: Transportation Charges paid by company first we have to calculate the Service Tax.....

Ex:
Transportation Charges 50 000/-
As per Service Tax Act 1994 liability to pay service tax on freight charges is on the person paying freight charges.. we have to take 25 of the actual paid.

25 on actual paid (50000*25 ) 12 500 00 on this amount we have to calculate

12 Service Tax 1500/-
3 Education Cess 45/-
Total Service Tax amount 1545/- (This amount we have to pay to Govt)

1. Create Liability
against Service Tax:

Service Tax A/c Dr 1545
Service Tax Liability A/c Cr 1545

2. After payment of Service Tax:
Bank/Cash A/c Dr 1545
Service Tax Liability A/c Cr 1545

Service Tax Liability Account may be
nullified.

 
Is this answer useful? Yes | No
April 21, 2009 10:06:48   #2  
Amitabh Singh Member Since: April 2009   Contribution: 1    

RE: Service Tax
Service Tax would be credited by debiting the vendor's A/c bill wise for the whole time period of say one month or one quarter etc. and at the time of payment the Service Tax A/c would be debited by crediting the payment source A/c say Bank or cash.
 
Is this answer useful? Yes | No

 Related Questions

Latest Answer : Service Tax is a form of indirect tax imposed on specified services called “taxable servicesâ€. Presently it covers 58 services.  service tax shall be paid by the service provider but collected from the service receiver.Excise is also a form of indirect ...

How to pass a JV when we receive bill including service tax? How to close this a/c? 
Latest Answer : Service Tax would be credited by debiting the vendor's A/c bill wise for the whole time period of say one month or one quarter etc. and at the time of payment the Service Tax A/c would be debited by crediting the payment source A/c say Bank or cash. ...


 Sponsored Links

 
Related Articles

Service Oriented Java Business Integration Review

Service Oriented Java Business Integration Review Introduction If you ve read through the texts which give you an introduction to SOA or Web Services you will often find them to be quite frustrating and the reason for this is because they spend too much time referencing business processes which are
 

Switched Multi Megabit Data Service (SMDS)

Switched Multi Megabit Data Service SMDS SMDS or Switched Multi Megabit Data Service is used to communicate on the Public Data Networks using the WAN networking technology The SMDS technology uses fiber or copper wires for networking There are many components in the SMDS networking environment that
 

Service Autonomy

Service Autonomy As Businesses continue to step up the process of constructing enterprise automation logic in the service format there is also an increasing need to step up both the efficiency and reliability that the services are intended to take on at run time This dire need is increased when it c
 

Service Oriented Infrastructure

Service Oriented Infrastructure Service Oriented Infrastructure is a systematic means for describing Information Technology infrastructures in the terms of a service The underlying principles of Service Oriented Infrastructure revert back to LDAP and Mainframe technologies among others Where Service
 

Service Reusability

Service Reusability One of the most vital principles of Service Oriented Architecture is that of service reusability And in today’ s day and age it can be said that we have been making a lot of progress towards improving both this central tenet and Service Oriented Architecture in general
 

Standardized Service Contract

Standardized Service Contract Standardized service contracts are one of the key Service Oriented Architecture principles They ensure that services that are in the same inventory of services are kept in compliance with contract design standards The services in a Service Oriented Architecture are able
 

Service Discoverability

Service Discoverability Service discovery protocols can be thought of as network protocols that allow for the automatic detection of both services and devices that are offered by a computer network’ s various devices There are a lot of service discovery protocols available In this article
 

Service Loose Coupling

Service Loose Coupling Loose coupling can be thought of as the resilient relationship that exists among two or more systems or companies that have some sort of relationship based on exchange Each transactional end should make its requirements explicit somehow and make very few if any assumptions abo
 

Service Encapsulation

Service Encapsulation What is Encapsulation In the realm of computer networking the term encapsulation is utilized to include data from an upper layer protocol in to a protocol on a lower layer Such a method of abstraction through networking allows many different layers to add on functionality and f
 

Service Composability

Service Composability The principle of Service Oriented Architecture known as Service Composability can be broken up into two basic principles Service Discoverability and Service Composition When it comes to the realm of Service Design a lot of attention is paid to the enabling of those characterist
 

About Us -  Privacy Policy -  Terms and Conditions -  Contact -  Ask Question -  Propose Category -  Site Updates 

Copyright © 2005 - 2009 GeekInterview.com. All Rights Reserved

Page copy protected against web site content infringement by Copyscape