Levy of service tax

tirtha raj tamang (article assistant) (66 Points)

23 December 2014  

hi every one!
what will the accounting treatment for hotel expense in relation to reverse service tax?
In case, hotel charging service tax @ 4.94% i.e.on 40% of taxable value, what will be the correct accounting treatment in our books of account?can we simply avail such service tax @ 4.94% or there will be our liability @ 60% of the taxable amount?