Transactions for Input Service Distributor
In this document we are going to discuss the process and entries of input service distribution.
Purchase transaction with input service distribution location
- Choose the
icon, enter Purchase Invoice, and then choose the related link. - Select Vendor on Purchase Invoice header.
- Location code should not be blank on Purchase Invoice header, and Input Service Distribution should be marked True on Location master.
- Select G/L Account on Purchase Invoice line for service transaction.
For example, service of INR 10000 purchased by Input Services Distributor where input tax credit is available, GST 18% (9% CGST and 9% SGST for Intra-State/Intra-Union Territory, 18% for Inter-State transaction) will be charged on the invoice amount.
GST calculation will appear in the Fact Box, as following:
Component Amount GST Base Amount 10,000 CGST 900 SGST 900 G/L Entries for Intra-State Purchase of Services by Input Service Distributor where Input Tax Credit is available, will be as following:
Particulars Amount Service Account 10000 CGST Receivable Distributor Account 900 SGST/UTGST Receivable Distributor Account 900 Vendor Account -11800 For example, service of INR 10000 purchased by Input Services Distributor where input tax credit is not available, GST 18% (9% CGST and 9% SGST for Intra-State/Intra-Union Territory, 18% for Inter-State transaction) will be charged on the invoice amount.
GST calculation will appear in the Fact Box, as following:
Component Amount GST Base Amount 10,000 CGST 900 SGST 900 G/L Entries for Intra-State Purchase of Services by Input Service Distributor where Input Tax Credit is not available, will be as following:
Particulars Amount Service Account 10000 CGST Expense Account 900 SGST/UTGST Expense Account 900 Vendor Account -11800 For example, service of INR 10000 purchased by Input Services Distributor where input tax credit is available, GST 18% (9% CGST and 9% SGST for Intra-State/Intra-Union Territory, 18% for Inter-State transaction) will be charged on the invoice amount.
GST calculation will appear in the Fact Box, as following:
Component Amount GST Base Amount 10,000 IGST 1800 G/L Entries for Inter-State Purchase of Services by Input Service Distributor where Input Tax Credit is available, will be as following:
Particulars Amount Service Account 10000 IGST Receivable Distributor Account 1800 Vendor Account -11800 For example, service of INR 10000 purchased by Input Services Distributor where input tax credit is not available, GST 18% (9% CGST and 9% SGST for Intra-State/Intra-Union Territory, 18% for Inter-State transaction) will be charged on the invoice amount.
GST calculation will appear in the Fact Box, as following:
Component Amount GST Base Amount 10,000 IGST 1800 G/L Entries for Inter-State Purchase of Services by Input Service Distributor where Input Tax Credit is not available, will be as following:
Particulars Amount Service Account 10000 IGST Expense Account 1800 Vendor Account -11800
Purchase return transaction with input service distribution location
- Choose the icon, enter Purchase Return Order or Purchase Credit Memo, and then choose the related link.
- Select Vendor on Purchase Return Order or Purchase Credit Memo header
- Location code should not be blank on Purchase Return Order or Purchase Credit Memo header, and Input Service Distribution should be marked True on Location master.
- Select G/L Account on Purchase Return Order or Purchase Credit Memo line for service transaction.
For example, service of INR 10000 returned by Input Services Distributor where input tax credit is available, GST 18% (9% CGST and 9% SGST for Intra-State/Intra-Union Territory, 18% for Inter-State transaction) will be charged on credit memo.
GST calculation will appear in the Fact Box, as following:
Component Amount GST Base Amount 10,000 CGST 900 SGST 900 G/L Entries for Intra-State Purchase Return/Credit Memo of Services by Input Service Distributor where Input Tax Credit is available, will be as following:
Particulars Amount Service Account -10000 CGST Receivable Distributor Account -900 SGST/UTGST Receivable Distributor Account -900 Vendor Account 11800 For example, service of INR 10000 returned by Input Services Distributor where input tax credit is not available, GST 18% (9% CGST and 9% SGST for Intra-State/Intra-Union Territory, 18% for Inter-State transaction) will be charged on credit memo.
GST calculation will appear in the Fact Box, as following:
Component Amount GST Base Amount 10,000 CGST 900 SGST 900 G/L Entries for Intra-State Purchase Return/Credit Memo of Services by Input Service Distributor where Input Tax Credit is not available, will be as following:
Particulars Amount Service Account -10000 CGST Expense Account -900 SGST/UTGST Expense Account -900 Vendor Account 11800 For example, service of INR 10000 returned by Input Services Distributor where input tax credit is available, GST 18% (9% CGST and 9% SGST for Intra-State/Intra-Union Territory, 18% for Inter-State transaction) will be charged on credit memo.
GST calculation will appear in the Fact Box, as following:
Component Amount GST Base Amount 10,000 IGST 1800 G/L Entries for Inter-State Purchase Return/Credit Memo of Services by Input Service Distributor where Input Tax Credit is available, will be as following:
Particulars Amount Service Account -10000 IGST Receivable Distributor Account -1800 Vendor Account 11800 For example, service of INR 10000 returned by Input Services Distributor where input tax credit is not available, GST 18% (9% CGST and 9% SGST for Intra-State/Intra-Union Territory, 18% for Inter-State transaction) will be charged on credit memo.
GST calculation will appear in the Fact Box, as following:
Component Amount GST Base Amount 10,000 IGST 1800 G/L Entries for Inter-State Purchase Return/Credit Memo of Services by Input Service Distributor where Input Tax Credit is not available, will be as following:
Particulars Amount Service Account -10000 IGST Expense Account -1800 Vendor Account 11800