12 May 2014
When you receive the Service from Foreign Vendor.
Expense Account………………………………..Dr To Party To TDS Payable
ST will be due on making payment or 6 months from the invoice.
When you make payment to vendor
Party Account………………………………..Dr Service Tax Input but Not Due…………….Dr To Bank To Service Tax Payable
When you make Service Tax Payment Service Tax Payable Account …………………….Dr To Bank
For Cenvat Service Tax Input Account………………………..Dr To Service Tax Input but not due
Please note that you can not utilise the input credit for payment of service tax arising out of RCM. Further you can take the credit of ST paid only after making the payment.
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