Big organizations are involved in number of transactions happening
everyday. These transactions must be recorded in efficient manner since
they effect the business results in the long run and accordingly they must
portray the exact activity happened on that particular day with
corresponding amounts involved.
So, following entries will be passed at happening of various events.
Service Tax
Entries for transactions involving service tax are as followed :-
At the time of rendering/provision of services
Debtor Dr.
To Revenue
To Service Tax Output
At the time receipt of services
Expenses Dr.
Service Tax Input Dr.
To Creditors
When adjustment is to be made
Service Tax Output Dr.
To Service Tax Input
To Service Tax Payable
At the time of payment
Service Tax Payable Dr.
To Cash/Bank
VAT
Entries for transactions involving VAT are as followed :-
At the time of Purchase
Purchase Dr.
VAT Input Dr.
To Creditors
At the time Sale
Debtors Dr.
To Sales
To Vat Output
When adjustment is to be made
VAT Output Dr.
To VAT Input
To VAT Payable
At the time of payment
VAT Payable Dr.
To Cash/Bank
TDS
Entries for transactions involving TDS are as followed :-
When Expenses are recorded
Expenses Dr.
To Party
To TDS Payable
At the time of payment of above amount to Govt.
TDS Payable Dr.
To Cash/Bank
When income is recorded/booked
Party Dr.
TDS deducted Dr.
To Revenue