Provision of Service Tax
This query is : Resolved
CA Brijesh Gandhi
(Querist)
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.
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CA Nitin Wadhwani
(Expert)
16 April 2009
1.Yes
2.No
3.Proportionately.
2.No
3.Proportionately.
Message likes :
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