Reversal charges mechanism in service tax
This query is : Resolved
rahul vasant deshmukh
(Querist)
05 December 2012
Hi Friends, please suggest me regarding entries in books of service provider and service receiver in case of reversal charges mechanism.
05 December 2012
In the books of service provider (in case of reverse charge mechanism):
No entry (if 100% payable by service receiver)
If partly by service provider and partly by service receiver then,
Debit: Bank (collected amount)
Credit: service tax liability
upon payment to govt:
Debit: service tax liability
Credit:Bank
In the books of service receiver (in case of reverse charge mechanism)
Debit : service tax cenvat credit (Current asset)
Credit: Service tax liability (current liability)
up on payment to Govt:
Service tax liability -Debit
Bank -credit.
Note : service tax credit you can claim only in the next month to the payment month.
No entry (if 100% payable by service receiver)
If partly by service provider and partly by service receiver then,
Debit: Bank (collected amount)
Credit: service tax liability
upon payment to govt:
Debit: service tax liability
Credit:Bank
In the books of service receiver (in case of reverse charge mechanism)
Debit : service tax cenvat credit (Current asset)
Credit: Service tax liability (current liability)
up on payment to Govt:
Service tax liability -Debit
Bank -credit.
Note : service tax credit you can claim only in the next month to the payment month.
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
- Depreciation Chart Companies Act
- EPF ECR NEW FILE SEP 17TH 2026
- Capital Gail Exemption Certificate
- GST on Renting godown to KFCSC for Storage of Raagi
- SECTION 393(3) TAX ON CASH WITHDRAWAL
- TAX AUDIT ON PROFESSIONAL INCOME
- Import of Software Service.
- Clarification Requested: Gift → NRO → NRE → Overseas Transfer - USA/CANDA (FEMA & Tax Compliance)
- Oct 2025 Invoices
- Utilisation Fy 25-26 TDS challans in Fy 26-27 TDS Return
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
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
