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Answer Posted / raosaheb gunjal
Indirect tax is opposite of direct tax. Indirect tax is not
related to indivisual besis, its recovered from indirectly
to consumer through the verious bulk quantity of goods or
services. In short Indirect tax means central excise tax
under the income tax act 1961.
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Suppose My received Interest Income is 24934.59 And for the same time my Bank Charge total is 7785.19. Now the total Bank Charge will be deducted from Interest Income and the amount of (24934.59-7785.19)=17149.40 will be withdrawn to deposit in govt. Account.What will be the Journal Entry for 17149.40. Here, Already Bank Charge 7785.40 is Already Debited and 24934.59 is already credited in Journal.
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