Journal entry

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

23 June 2016 What will be the journal entry if , service tax is payable for GTA under RCM, and the assessee is a SSI ? Is it right to charge to p&l account as service tax paid when the same is not used as input credit?

Vipin Garg

Vipin Garg (Expert)
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23 June 2016 You can directly charged it down to profit and loss account.

The Journal Entry for the same will be: -

Transportation Charges A/c Dr.
Reverse Charge on GTA (under profit and loss account) Dr.
To Reverse Charge Payable on GTA
To Sundry Creditor

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