Allowability of service tax paid
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
29 September 2012
My client pays service tax on a reverse charges basis.
The entry passed is,
Service Tax Paid Dr
To Service Tax payable
Is the service tax paid allowed as an expenditure under the Income tax act.
The client has no output tax to have the amount adjusted.
The entry passed is,
Service Tax Paid Dr
To Service Tax payable
Is the service tax paid allowed as an expenditure under the Income tax act.
The client has no output tax to have the amount adjusted.
CA Navin Jain
(Expert)
29 September 2012
yes, it will be allowed as expenditure under income tax act.
CA.Vinita Gupta
(Expert)
29 September 2012
Yes it will be allowed under Income tax act. Agreed with Navinji
CA Suresh Jain
(Expert)
30 September 2012
The accounting entry is also correct account head may be changed to "Service tax (RCM) Paid A/c."
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