15 April 2010
One of our labour contractor claiming service tax & PF on company.What's the treatment in accounts. Is here service tax & PF amount treat seperatly if yes in which under group (Expense or Liability)
The same should be charged to natural head of expense account. suppoose Total cost os Rs. 100 ( lobor charge- Rs. 80, Pf Rs. 10 , ST Rs. 10) . 100 Rs. should be debited to expense account. ( asuming credit of service tax not availbale)
If credit of service tax available to you rs. 10 should be transfered to service tax receivable account and Rs. 90 should vbe shown as expense.
CAclubindia
