Accounting entry in service tax
This query is : Open
Querist : Anonymous
Querist :
Anonymous
(Querist)
26 May 2015
How to pass a Accounting Entry under Reverse charge mechanism of service Tax. For eg.: if a Service Tax Provider Bill is of Rs.92474/- and Service Tax calculated @ 12.36% on above Rs.11,430/-. How one should calculate the reverse Service tax application and the TDS deducted on the same. How the same has to be shown as accounting entry, Please provide the right method of accounting. Thanks.
26 May 2015
The Reverse Charge Mechanism is calculated as total service tax payable less abatement if any.
Assuming the service receiver has to pay 100% Service Tax (Legal) (in the books of Service recipient)
Accounting Entry would be
Legal Service A/c - - - Dr 92,474
To TDS payable A/c - - - - - 9,248
To Service provider - - - - 83,226
(Being legal invoice accounted)
Service Tax Payable A/c ----Dr 11,430
To Bank 11,430
(Being Service Tax under RCM paid)
CENVAT Credit Availed A/c - Dr 11,430
To Service Tax Payable 11,430
(Being CENVAT credit taken)
Please note that Service Tax can be claimed under RCM only after payment of Service Tax.
Assuming the service receiver has to pay 100% Service Tax (Legal) (in the books of Service recipient)
Accounting Entry would be
Legal Service A/c - - - Dr 92,474
To TDS payable A/c - - - - - 9,248
To Service provider - - - - 83,226
(Being legal invoice accounted)
Service Tax Payable A/c ----Dr 11,430
To Bank 11,430
(Being Service Tax under RCM paid)
CENVAT Credit Availed A/c - Dr 11,430
To Service Tax Payable 11,430
(Being CENVAT credit taken)
Please note that Service Tax can be claimed under RCM only after payment of Service Tax.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- ITDS U/S.194T of Firm
- TDS CREDIT MISMATCHING
- Buy back of shares u/s69
- Tax Audit Applicability – Newly Formed Partnership Firm with Profit Below 6%/8%
- Difference between Date of Payment and Date of Deduction?
- Unregistered suppliers utility
- EXPORT COMMERCIAL INVOICE HSN CODE
- TDS AND ITR ISSUE
- Need Professional Opinion - AY 2012-13 Old Demand & AY 2026-27 Refund Adjustment
- Journal entry of busniess expenses
- Non-Compliance documents have not been submitted by the contractors debited
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
- LLP audit under companies act
- Experienced CA recommendation from Kolkata for FNO return filing
- Interest Reporting in Form 168
- Sales of goods of amount Rs77 lakhs to a party
- Tax Demand of ₹4,650 for AY 2026-27
- Concept of Vendor and customner reconciliation
- Mistake in e-invoice identified after 24 hours
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
