Credit taken for service tax

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This query is : Resolved

shikha (Querist)

01 April 2010 we are a construction company, we paid 50,000/- service tax in march'2010 the year (2009-2010)which was pending for the year(2008-2009). now the problem is we never made any o/s entry in 08-09 for tax. since now tax is paid for last year,wat entry or treatment should i give it in my books of accounts for book keeping. as last year books are already closed & audited.

M Prabhakar Menon

M Prabhakar Menon (Expert)

01 April 2010 Open an "Expense Relating to previous Year A/c" and debit the amount to this account.This will not be a charge to your current year's revenue but an appropriation and will have to be shown "Below the Line" in the P & L A/c for the year.

shikha

shikha (Querist)

01 April 2010 ya right but in that case how will i take the ceredit of this expense in this current year.. as per 43B it can be taken as a actual payment basis so i can take it as current year expense?
in that case what will be the entry?

CA Ashok Kumar Sahu

CA Ashok Kumar Sahu (Expert)

03 April 2010 yes,
you can claim ded'n if last year you amt of service tax disallow u/s 43B.

entry not changed, ded'n claim at the time of filling of return

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