Cess on service tax

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This query is : Resolved

CA Surajit Kashyapi (Querist)

07 May 2009 Suppose I have a bill with service tax.
Service charge AAA
Service tax @10.30% = BBB

[ Cess has not shown separately in bill].

If I book the bill in the same way and cess not book separately... is there any problem?

Separately booking of cess is mandatory or not?
If I book cess with service tax basic amount but shown service tax basic amount and cess separatly in service tax return then what will be the result?

Madhukar N Hiregange

Madhukar N Hiregange (Expert)

07 May 2009 Ideally you should book the service tax and cess separately even if the service provider has clubbed the same.

CA Suresh Choudhary

CA Suresh Choudhary (Expert)

07 May 2009 Yes expert is correct

SIDDHARTHA SANKAR ROY

SIDDHARTHA SANKAR ROY (Expert)

07 May 2009 Also problem would arise at the time of making payment of tax. You have to mention proper accounting head for service tax as well as edu cess & HSEC.

And if you want to CENVAT credit you can utilise credit of E.Cess for payment of E.Cess payable by you only.

So it is always advisable to book these items separately.

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