Answer Posted / deepak samantaray
At the Time of Payment:-
Expenditure A/C Dr 10000/-
Service Tax Receivable A/C Dr 1236/-
To Cash/Bank 11236/-
At the Time of Received:-
Cash/Bank A/C Dr 11236/-
To Income 10000/-
To Service Tax Payable 1236/-
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Suppose there is a computer Inst. providing a course abc and the total fees for it is Rs.10000 per annum, now this institute gives the right to another institute to provide facility of that course on behalf of it and the fees amt. is bifercated to Regd. fees Rs. 2500, Exam fees Rs.500 and tution fees Rs.7000,now the former institute gives right to later ins. to take Rs.7000 and says that the amt. of regd. fees and Exam fees i.e Rs. 3000 must be given to it plus service tax, now we have to save the former ins. from paying service tax on Amt. 3000, how can we do this?
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