How to make journal entry if service receiver do not pay st

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

10 April 2016 i have a raise a invoice of RS. 1,14,500
service charges 1,00,000
service tax 14,500
total 1,14,500
and i have only received RS. 1,00,000
i have made entry in my books
1. party A/C DR 1,14,500
To Service tax payable 14,500
to income 1,00,000
2 on receipt of amount Rs.
bank A/C Dr. 1,00,000
to party A/C 1,00,000
and service receiver not willing to pay service tax amount then what next entry shall be made in books of service provider to make short payment received and service tax tax liability. please reply this question.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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10 April 2016 Issue credit note for 14,500 and back work the service tax on 1 lac and pay it.

Amol S Joglekar

Amol S Joglekar (Expert)
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10 April 2016 Since you have issued INVOICE.
Pay service tax 14500. Debit service tax payable 14500, credit bank 14500
After the reasonable care and follow, if you feel that the amount of 14500 is not recoverable, then pass the entry debit bad debt 14500, credit party account 14500

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