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.
Message likes :
1 times
CA Nitin Wadhwani
(Expert)
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
- Gst credit note by supplier
- Movement of goods by packers and movers - type of sale - Reg.
- GST on reimbursement of expenses
- Due date for filing return for the partner in partnership subjected to Tax Audit
- Missed uploading GST Invoice
- Query on effect of registration of property
- Gratuity paid to legal heir above 20 lakh is taxable or not
- Wrong CMPo8 file
- Equity Share Sale and Purchase
- Goodwill transfer of deceased father’s firm – ICAI applying a 27.04.2026 cut-off to the 3 year limit
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- "Please ensure that the Total of the Deductions u/s 54F match the same in Table D in Sch CG"
- Need to correct "Whether it is last installment " response in Form 26 QB
- " Income from House Property " in joint names of co-owners
- REGARDING TDS RETURN OF FORM 27Q
- Notice under e-Verification Scheme
- GST demand notice for ITC reversal against exempted supply.
- RCM ON SECURITY CHARGES FROM INDIVIDUALS
- How to get money back from delisted company
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
