Professional fees of Rs.100000/- is paid to a consultant Thakur & Co.
Please pass the necessary Journal Entry for both situation.
Situation A: If Thakur & Co. having not GST registration
Situation B: If Thakur & Co. having GST Certificate.
Solved: Situation A
Professional Fees A/c Dr 100000
TO TDS Payable 10000 (TDS on Professional Services u/s 194J)
To Thakur & Co. A/c 90000
(Being Journal entry for professional services from Thakur & Co.)
Thakur & Co. A/c Dr 90000
To Cash / Bank Ac 90000
(Being Paid to Thakur & Co. against Professional Services)
TDS Payable A/c DR 10000 (TDS on Professional Services u/s 194J)
To Cash / Bank A/c 10000
(Being TDS Paid against professional services)
Solved: Situation B
Professional Fees A/c Dr 100000
IGST Input 18% A/c Dr
18000
TO TDS Payable 10000 (TDS on Professional Services u/s 194J)
To Thakur & Co. A/c 108000
(Being Journal entry for professional services from Thakur & Co.)
Thakur & Co. A/c Dr 108000
To Cash / Bank Ac 108000
(Being Paid to Thakur & Co. against Professional Services)
TDS Payable A/c DR 10000 (TDS on Professional Services u/s 194J)
To Cash / Bank A/c 10000
(Being TDS Paid against professional services)
Note: I have assumed that in situation B, Service provider and receiver are interstate
