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