Credit taken for service tax

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shikha (Querist)
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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)
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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)
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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)
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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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