27 June 2015
Suppose in an expenditure, i am gonna pay the service tax after suppose 2 months, so obviously i am gonna claim the Cenvat of the same at the time of payment. But i book the invoice at the date of getting it, suppose in month of March. So, i also create liability for Service tax payable -which will be credited being a provision. But what should be debited with that? Coz obviously Cenvat Credit A/c cannot be debited since we cannot claim it in March. What will be debited is important because of the year end in between.
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