Accounting entry in case or partial reverse charge

ashwani dhawan (CA) (61 Points)

20 February 2013  

Hi,

Kindly tell accounting entry for the following data of input service(rent a cab service).

Kindly note cevat credit on this service is not available.

A) Service provider avail abatement of 60% of service tax liability & rest 40% is to be paid by service Receipient under partial reverse charge. ie by us.But does'nt show amount of service tax liability in invoice to be paid by service receipient.

Service Charges  =  Rs. 100/-

Total Bill Amount= Rs.100/-

 

B) Service provider doesn't avail any abatement & 40% of total service tax payable is to be paid by service receipient under partial reverse charge.

Service Charges  = Rs.100/-

Service Tax    =     Rs. 7.416/-

Total Bill Amount =  Rs.107.416/-

 

C) Service provider avail abatement of 60% of service tax liability & rest 40% is to be paid by service Receipient under partial reverse charge. ie by us.

Service Charges  = Rs.100/-

Service Tax      = Rs.4.944/-

Total Bill Amount = Rs.104.944

 

Kindly reply considering TDS @ 1%.

Rgds,

Ashwani