Provision of Service Tax

This query is : Resolved

CA Brijesh Gandhi (Querist)
Follow

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?

Dayal

Dayal (Expert)
Follow

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.

Message likes : 1 times

CA Nitin Wadhwani

CA Nitin Wadhwani (Expert)
Follow

16 April 2009 1.Yes
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

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

Sneh Choraria

Rajesh Surapaneni

Pratap Kumar De

Pavithra Doss

Anoop

Subscribe Now

Provision of Service Tax

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

GST CONSULTANT

Senior Executive

Manager- Finance and Compliance

Accountant

CA Final

GST CONSULTANCY