Entry for service tax and detail explanation
This query is : Resolved
dharmender
(Querist)
04 February 2016
manufacturing company receive services ( Work Contract ) from proprietor firm(ABC) of Rs. 1,00,000. services tax on that @14.5%.
Entry in Companies book;
Service charge a/c 1,00,000
Service tax Receivable 7250(50%)
To ABC 1,07,250
To Services tax Payable 7250(50%)
or
Service charge a/c 1,00,000
Service tax Receivable 14500
To ABC 1,14500
To Services tax Payable 14500
And What about in the books of ABC book?
Entry in Companies book;
Service charge a/c 1,00,000
Service tax Receivable 7250(50%)
To ABC 1,07,250
To Services tax Payable 7250(50%)
or
Service charge a/c 1,00,000
Service tax Receivable 14500
To ABC 1,14500
To Services tax Payable 14500
And What about in the books of ABC book?
Arun Kumar Singh
(Expert)
07 February 2016
In the work contract services limited company are also liable to pay service tax under reverse charge system. If these services are related to construction of building then cenvat credit will not be applicable.
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