kumardurgam

 Profile Answers by kumardurgam 

• Mar 12th, 2009

 

To arrive the bill amount before service tax the following can be done.
Ex:- The total bill value is 1136. and the service tax rate is 12.36% (12%+3%
Cess on Tax)
The net bill amount = 1123.36*100/112.36 (i.e.100+12.36) = 1000
Now you can post the net bill to respective account and remaining to service tax.

vasudeo007

 Profile Answers by vasudeo007 

• Jun 14th, 2009

 

Sirji,

It is simple question.

First of all, there are two situations involved in this single question.

1. When you account for those service taxes and
2. When you don't account for those service taxes

case 1: Suppose you are buying raw material and you must show government how much service taxes you have paid for procurring the raw material then you will open separate account for service taxes paid and account for that part of the entry in to that account

Case 2: You simply procur raw material irrespective of the service taxes paid on procuring the same, then you will pass simple entry - Raw Material a/c dr. to Bank a/c

Regards,
Vasudeo

chinnaguntupalli

 Profile Answers by chinnaguntupalli 

• Sep 9th, 2009

 

Entries to post is

Expense A/C   Dr.
Tax A/C           Dr.
Vendor A/C     Cr.

Upon end of each month we will file return with Govt. entry would appear like this.

Tax Payable A/C Dr.
Tax A/C              Cr.

Tax A/C              Dr.

to Vendor A/C (Govt) Cr.

bhardwaj.anit

 Profile Answers by bhardwaj.anit 

• Aug 23rd, 2010

 

If we can cliam Service Tax:

Exp A/C Dr
Service Tax A/c Dr
To Vendor's A/C

If we can not claim service tax :

Exp A/c Dr

To Vendor A/C(With Gross Amount)