Cenvat credit in service tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

11 April 2015 we are service receiver under rcm and service provider.
we pay service tax under rcm
can we use this service tax and adjust it against service tax liability on services provided.

what should be the correct accounting entry for using cenvat credit?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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11 April 2015 Cenvat credit on service tax paid under RCM can be adjusted against out put service tax payment.

Querist : Anonymous

Querist : Anonymous (Querist)

11 April 2015 thanks
sir we do entry for service tax under rcm

Building maintenance a/c Dr
To TDS
To Rcm work contract service tax
To Party

Rcm work contract service tax a/c Dr
To Service tax payable

Service tax payable a/c Dr
To Bank

we are providing some services on which we receipt income on that we required to pay tax

Bank a/c Dr
To Rent from commercial property

Rent from commercial property a/c Dr
To ST Payable

Now what entry should we pass for adjusting service tax

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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11 April 2015 ST payable ac Dr

To Building maintenance ac
(cenvat credit adjustment entry)

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