Rate of applicability of service tax
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
18 April 2012
Dear Members good morning to all,
I have a query regarding the service tax rate applicability in case of making a provision for the F.Y 2011-12 in respect of audit fees payable. Generally provision is to be made at the end of F.Y 2011-12 for the Audit fees payable. There is a change in service tax rate w.e.f 1st April 2012. Generally the statutory auditor will raise bill in the month of say June 2012. So then service tax is payable @ 12.36%. Then for making provision what rate of service tax to be taken whether at 10% or 12%. What should be the journal entry for making the provision for audit fees.
I have a query regarding the service tax rate applicability in case of making a provision for the F.Y 2011-12 in respect of audit fees payable. Generally provision is to be made at the end of F.Y 2011-12 for the Audit fees payable. There is a change in service tax rate w.e.f 1st April 2012. Generally the statutory auditor will raise bill in the month of say June 2012. So then service tax is payable @ 12.36%. Then for making provision what rate of service tax to be taken whether at 10% or 12%. What should be the journal entry for making the provision for audit fees.
18 April 2012
You will make the provision for 12.36% Statutory auditing. The Journal Entries are:-
Audit Fees A/c Dr.
To Audit Fees Payable A/c
Audit Fees Payable A/c
To Bank A/c
Audit Fees A/c Dr.
To Audit Fees Payable A/c
Audit Fees Payable A/c
To Bank A/c
18 April 2012
First of all, you should not assume service tax for making provision.
You need to provide only for audit fees and not for service tax because u dont know whether he will give u backdated invoice (10%) or current invoice (12%).
Hence, make a provision only for audit fee and deduct TDS accordingly on that.
You need to provide only for audit fees and not for service tax because u dont know whether he will give u backdated invoice (10%) or current invoice (12%).
Hence, make a provision only for audit fee and deduct TDS accordingly on that.
18 April 2012
Agreed there is no need to make provision for service tax in this case
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
- Itr 1 processing
- Off Market debit and credit transaction
- Reporting Income under Section 44ADA
- Showing Gift from relative in ITR for this year
- ITR 1: Details for showing Exempt Income
- ITR selection for salaries and capital gain less than L
- Short Term Capital gain on shares bought and sold after 2018 onwards
- ITR returnFY25-26
- Form 10E u/s 89(1). Need clarification because experts opinions differ !!!!
- Share accounting-->fifo - capital gain - period as per fifo?
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public 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
