presentaion of S.tax liab. in Balancesheet

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This query is : Resolved

CA Brijesh Gandhi (Querist)

16 September 2009 Service Tax Query:

Financial Year 2008-09

Gross Amount to be received from Client: Rs.200
Amount received at the time of Collection on March 25th, 2009: Rs.100
Input Credit Availed:Rs.200
Input Credit Utilised: Rs.30
Amount paid to Government on June 30th , 2009: Rs.70(i.e. in next year)

Query:
What amount of liability should be shown in Balancesheet at the year end March 31st, 2009.

Option : Rs.100 , Rs.70 , Rs.170 ,Rs.200

kindly suggest your valuable reply with reasons as soon as possible for the above query.

regards,

Brijesh V. Gandhi

Shyam Lal Naik

Shyam Lal Naik (Expert)

16 September 2009 From the facts, it appears that, the amount received towards service tax is Rs. 100/- as against Rs. 200/- billed. Further the balance Rs. 100/- is not recoverable.

One of the possible solution is :

1) Write off the amount not collected on 31.03.09
2) Adjust Rs. 30/- against Cenvat
3) Show the balance liability of Rs. 70/- in B/S

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