Journal entry
This query is : Resolved
23 June 2016
Dear Expert,
We are the service provider in one instance we received some advance when service tax rate was 12.36% and we did not issue any invoice.
In current year when service tax rate become 14% we issued a composite invoice for services rendered and charged service tax @ 14%.
Now how should I deal with service tax issue:- below is the transection detail:-
On Receipt
02/08/14 Party 393300.00 Cr
Service Tax Payable 12% 42004.00 Cr
E Cess Payable 2% 840.00 Cr
SHE Cess Payable 1% 420.00 Cr
Bank 393300.00 Dr
SERVICE TAX LIABILITY 12% 42004.00 Dr
Education Cess Liability 2% 840.00 Dr
SHE CESS Liability 1% 420.00 Dr
22/08/14 Party 263880.00 Cr
Service Tax Payable 12% 28182.00 Cr
E Cess Payable 2% 564.00 Cr
SHE Cess Payable 1% 282.00 Cr
HDFC GTI - 7013 263880.00 Dr
SERVICE TAX LIABILITY 12% 28182.00 Dr
Education Cess Liability 2% 564.00 Dr
SHE CESS Liability 1% 282.00 Dr
Invoice Entry
19/03/16 Party 1026853.00 Dr
Income Borkerage 896815.00 Cr
Service Tax Payable 14% 125554.00 Cr
Swach Bharat Cess Payable 4484.00 Cr
We are the service provider in one instance we received some advance when service tax rate was 12.36% and we did not issue any invoice.
In current year when service tax rate become 14% we issued a composite invoice for services rendered and charged service tax @ 14%.
Now how should I deal with service tax issue:- below is the transection detail:-
On Receipt
02/08/14 Party 393300.00 Cr
Service Tax Payable 12% 42004.00 Cr
E Cess Payable 2% 840.00 Cr
SHE Cess Payable 1% 420.00 Cr
Bank 393300.00 Dr
SERVICE TAX LIABILITY 12% 42004.00 Dr
Education Cess Liability 2% 840.00 Dr
SHE CESS Liability 1% 420.00 Dr
22/08/14 Party 263880.00 Cr
Service Tax Payable 12% 28182.00 Cr
E Cess Payable 2% 564.00 Cr
SHE Cess Payable 1% 282.00 Cr
HDFC GTI - 7013 263880.00 Dr
SERVICE TAX LIABILITY 12% 28182.00 Dr
Education Cess Liability 2% 564.00 Dr
SHE CESS Liability 1% 282.00 Dr
Invoice Entry
19/03/16 Party 1026853.00 Dr
Income Borkerage 896815.00 Cr
Service Tax Payable 14% 125554.00 Cr
Swach Bharat Cess Payable 4484.00 Cr
23 June 2016
as per new amendment every time its specified that you have to pay the new cess, but if you provide the service and receipt the payment then new cess liability not arise.
26 June 2016
Thank you sir.
What about old cess that we have paid on receipt of advance?
We could not charge it as at the time of raising of invoice that was withdrawn by the govt.
What about old cess that we have paid on receipt of advance?
We could not charge it as at the time of raising of invoice that was withdrawn by the govt.
27 June 2016
you have to deposit with the cess with the govt., due to you cannot take this amount with you.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- CLOSING STOCK QUERY
- Missed TDS
- ITR 44AD SECTION
- TDS _Long term Capital Gain ref.sec 214 Table 2
- Loss of interest in PF transfer from EPFO to Trust
- TDS on rent received on hardship compensation being rent on redevelopment of building
- NRI INSURANCE ADVISOR
- Applicability of Books of Account for Commission Income (Sections 194D & 194H)
- Technical Glitch in ITR-4 Online Form (AY 2026-27): Sec 44AE Partner Remuneration not mapping to E8
- Residential status of non resident
- DUE DATE FOR ITR FILING
- Concept of Vendor and customner reconciliation
- Mistake in e-invoice identified after 24 hours
- EXPORT PAYMENT
- NRI ITR2 account in 2025-26.
- Query regarding reporting of exempt foreign remuneration in ITR (AY 2026-27)
- FEMA/RBI treatment — Amazon.ca arbitrage (US buy, Canada sell, goods never enter India)
- Goods return by customer
- INWARD REMITTANCE FOREIGN
- CPC and SAC
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
