Purity (Accounts ) (28 Points)
19 August 2012What is the Accouting entry for service tax which was payable in 2010-2011 was not paid in that particular year and no provision was made during the year 2010-2011. it is to be payale in 2012-13 because of the demand raised by the commercial tax department.where will it appear in the Balance sheet and Profit and loss A/c .Note that it is a proprietor.Kindly answer...
Giridhar S Karandikar
(Team Lead)
(7543 Points)
Replied 19 August 2012
You need not create any provision. Directly debit Service Tax Account & credit Bank/Cash/CenvatCredit account.
Was the Service tax for 2010-11 paid and this is an additional tax that would be paying because of the same being raised by the officer or the St was not being paid at all.
Giridhar S Karandikar
(Team Lead)
(7543 Points)
Replied 19 August 2012
You need not create any provision. Directly debit Service Tax Account & credit Bank/Cash/CenvatCredit account.
Was the Service tax for 2010-11 paid and this is an additional tax that would be paying because of the same being raised by the officer or the St was not being paid at all.
Manoj Agarwal
(Service Tax Consultant Rourkela ServiceTaxExpert@yahoo.com)
(3456 Points)
Replied 22 January 2013
Directly Debit the amount paid to Service Tax Expense A/c under Indirect Expenses. However, the allowability of this expense under Income tax is questionable.
Further, you said that the commercial tax department has raised the demand, i suppose you mean the Central Excise and Service Tax authorities, because CTD cannot raise demand for service tax.
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