06 October 2015
SIR, IN CASE OF A COMPANY IS PAYING SERVICE TAX AND NOT RECOVERING FROM ITS COSTUMER IN THIS CASE SERVICE TAX CAN BE TREATED AS A EXPENSE OR NOT.IF YES CAN WE TAKE THIS EXPENSE IN P&L.
In your case Since your company is not getting service tax portion charged on invoices from their customers ... i.e. paying from their pocket ... therefore service tax definitely would be treated as EXPENSE. and same will also be allowed as Expenses under section 37(1) under income tax too..
CAclubindia
