Accounting Journal Entries for Taxation -

Excise, Service Tax, Vat, TDS

Accounts
We all know the importance of provision and compute of tax liabilities. Liabilities which may be
monthly/quarterly/half-yearly or yearly basis, accountin !ournal entries is as equal important for
the same. "ere we will see how to make accountin !ournal entries of for taxation
# $alue Added %ax &$A%'
%he orani(ations enaed in )ale and purchase transactions have to pay $at liability. When
they purchase material $at is paid on purchases and when they sell material $at is collected on
material.
$at paid on purchase of material-#nput
$at paid on )ale of *aterial-+utput
+utput amount is ad!usted with the input and the balance is paid to the department. ,ntries to be
made are--
At the time of .urchase of *aterial
.urchase /r0000.
$at #nput /r00000
%o 1reditors00000000
At the time of )ale of *aterial
/ebtors /r000000.
%o )ales0000000000.
%o $at +utput0000000..
At the time of Ad!ustment
$at +utput /r000000..
%o $at #nput00000000000..
%o $at .ayable &#f +utput2#nput'000000000000
At the time of .ayment
$at .ayable /r0000000000..
%o 1ash/bank
## )ervice %ax
When services are received--
,xpenses /r000000000
)ervice tax #nput /r000000
%o .arty
When services are provided
/ebtors /r00000000
%o 3evenue000000000
%o )ervice tax +utput00000
At the time of Ad!ustment
)ervice tax +utput /r00000.
%o )ervice %ax #nput00000000.
%o )ervice tax .ayable000000000.
At the time of .ayment
)ervice tax .ayable /r0000000.
%o 1ash/bank00000000000000.
### ,xcise /uty
At the time of .urchase
.urchase /r00000..
1entral ,xcise #nput /r000..
,ducation 1ess #nput /r000000.
)econdary and "iher ,ducation 1ess #nput /r.
%o 1reditors
At the time of )ale
/ebtors /r00000.
*anufacturin /uty &4asic5,ducation 1ess5)econdary 6 hiher education cess' /r.
%o 1entral ,xcise +utput 0000000..
%o ,ducation 1ess +utput0000000..
%o )econdary 6 hiher education cess +utput00000
%o )ales &#ncludin excise duty amount'0000000000000000000..
#$ %ax /educted At )ource
At the time of deductin %/)
,xpenses /r00000
%o %/) .ayable0000000.
%o .arty000000000000
At the time of deposit of amount of %/)
%/) .ayable /r000000000
%o 1ash/4ank000000000000000
At the time of bookin of income
.arty /r00000000.
%/) deducted000000000
%o 3evenue receipts000000000000.
At the time of receipt of #ncome
4ank/1ash /r000000000..
%o .arty00000000000000..