Reverse charge mechanism
This query is : Resolved
10 August 2013
Dear Sir,
There is one doubt regarding RCM Treatment( Accounting Issue)
A Company has taken a car on hire basis from service provider(i.e; XYZ Travels, An Individual)
For this Invoice is raised for Rs10000/- and service tax portion amounts to 741/-(60%*12.36).
then how the entry will reflect in Service Receiver books .
There is one doubt regarding RCM Treatment( Accounting Issue)
A Company has taken a car on hire basis from service provider(i.e; XYZ Travels, An Individual)
For this Invoice is raised for Rs10000/- and service tax portion amounts to 741/-(60%*12.36).
then how the entry will reflect in Service Receiver books .
12 August 2013
Firstly abatement is 60% and taxable portion is only 40%.
So service tax liability amounts to Rs. 494.
Entry will be as under:
Car Hire Charges A/c Dr 10,494
To Cab Operator 10,000
To Service Tax Liability 494
So service tax liability amounts to Rs. 494.
Entry will be as under:
Car Hire Charges A/c Dr 10,494
To Cab Operator 10,000
To Service Tax Liability 494
13 August 2013
Sir, first ofall thanks for u r reply.
what is the entry, if customer takes Service tax input credit?
Reply me as early as possible sir.
what is the entry, if customer takes Service tax input credit?
Reply me as early as possible sir.
14 August 2013
Car Hire Charges Dr 10,000
CENVAT Receivable-Input Service Dr 494
To Cab Operator 10,000
To Service Tax Liability 494
CENVAT Receivable-Input Service Dr 494
To Cab Operator 10,000
To Service Tax Liability 494
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
- Relief Calculation u/s 89 of ITax 1961 in TableA Form10E
- Can we claim ITC in 28%
- Regarding E-invoice Generation
- Forgot to update debit note in gst
- Can we issue an invoice today
- SALE OF GOODS FROM OTHER STATE
- Wrongly goods delivered to other state
- Applicability of RCM on Frieght Inward supplies received from un-registered person
- Credit note Issue reg
- Ca final exam registration may-26
- Can we claim RCM ITC paid on Gst audit of earlier years,
- Foreign commission liable for rcm
- Loans and borrowing
- Registration of partnership firm maharashtra
- Tds on GST in connection with sale to public company
- B2B Amendment
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- Regarding Advance Tax not claimed in the Return of Income for A.Y. 2025-26
- No Compliences after incorporation
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
