Reverse charge mechanism
This query is : Resolved
A.JAGADEEP
(Querist)
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
A.JAGADEEP
(Querist)
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
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