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.
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
CAclubindia
