Accounting entry

Anubhaw Garg (Chartered Accountant in Practice)   (101 Points)

06 February 2016  
Hello Everyone An Automobile Company has under AMC Contract and is paying AMC charges for it. The party gives the bill with service tax charged on the same. The automobile co. while passing entry in its books transfers such service tax to service tax receivable account. Is the treatment done by company is correct? please reply for it.