Provision of Service Tax
This query is : Resolved
16 April 2009
There is Legal and professional SERVICES purchaseing by ABC co. for October,08 to Septmebr,09. for which ABC co. will be going to pay Rs.1,00,000 for a year plus service tax @ 10.30% amounting to Rs.10,300.( the BILL will be raised by the creditor as on end of SEPTEMBER,09)
Question :
1) if the ABC company made the provision for oct,08 to mar,09 Rs.50,000 FOR LEGAL AND PROFESSIONAL SERVICES , should ABC co. require to made provision for service tax Rs.5,150?
2) if ABC co. made the provision of service tax (Rs.5,150), should it take input credit of the same before september,09?
3) should ABC co. either take full service tax amt as a prov. on 31.March,09 or it accounted on 20009-2010 year?
Question :
1) if the ABC company made the provision for oct,08 to mar,09 Rs.50,000 FOR LEGAL AND PROFESSIONAL SERVICES , should ABC co. require to made provision for service tax Rs.5,150?
2) if ABC co. made the provision of service tax (Rs.5,150), should it take input credit of the same before september,09?
3) should ABC co. either take full service tax amt as a prov. on 31.March,09 or it accounted on 20009-2010 year?
16 April 2009
In normal terms provision is for the gross amount inclusive of taxes
Credit will be eligible only when the amount is paid and not on the provision,
You can take the credit but you cannot utilise unless payment has been made and realised by the provider.
It will appear under provision set off of service tax and utilisation only after payment is made.
Credit will be eligible only when the amount is paid and not on the provision,
You can take the credit but you cannot utilise unless payment has been made and realised by the provider.
It will appear under provision set off of service tax and utilisation only after payment is made.
Message likes :
1 times
16 April 2009
1.Yes
2.No
3.Proportionately.
2.No
3.Proportionately.
Message likes :
1 times
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
- Tax on Deemed Capital Gain
- Exiting partner in partnership firm in gst portal
- F & O PROFIT REPORTING FOR AY 2026-27
- Type of Capital Gain
- Banking Related Issue
- Traces submitting correction statement error
- Difff in ais receipts and gst turnover
- ASMT-10 received from A O
- IT returns for fresh job holders
- Consequences of Non-Deduction of TDS under Income Tax???????????????
- Gst on travel by air for business purposes
- Loss of interest in PF transfer from EPFO to Trust
- Seeking Advice: High Tax Shortfall on Job Switch + Let-Out House Property Loss in FY 2025-26
- TDS offline utility
- TDS on rent received on hardship compensation being rent on redevelopment of building
- Housing Society-ITR5
- TDS on Rent received on redevelopment of building
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- Upload Level ValidationITR3Category of Defect B/D
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
