banner_ad

SERVICE IN P & L A/C

This query is : Resolved 
Profile Image

Profile Image

(Querist)
09 June 2011 I am working in a company which engage in the business of service provider in refinery. We pay the service tax on service provided.

I want to know that whether we can show Gross Amount (basic value of service + service tax) in p & l a/c & then pass one more entry for creating service tax liabilities. Like below:-

(1) Party A/c Dr. (Gross Amt)
To Sales

(2) Service Tax A/c Dr.
To Service tax liabilities

HEAD OF SERVICE TAX A/C is sales a/c & service tax liabilities head is current liabilities.

Please guide me whether these presentation in accounts is according to the accounting practices.

Please give ref. to any guidance note etc.
Profile Image

CA. RAVIKUMAR

Profile Image

CA. RAVIKUMAR (Expert)
09 June 2011 Yes, you are Correct in maintaining the accounts as per income tax act.
in income tax Sec 145A States that purchase , sale and inventory shall be valued by taking into account the amount of any tax, duty, cess or fee.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now


CCI Pro
Join CAclubindia WhatsApp Finance Community & stay updated with the latest TAX news, compliance alerts and important updates all in one place!


Similar Resolved Queries


loading


Unanswered Queries


banner

Trending Online Classes

view all classess

CCI Pro
Meet our CAclubindia PRO Members
Subscribe Now

Follow us
add to google news



Answer Query



Quick Links



Browse by Category




Latest Job Openings

View all
Company
Featured 27 May 2026
Lead Conversion Executive / Sales Closing Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details
Company
26 May 2026
Education Content Creator

Adyayam Education LLP

Bengaluru

CA Foundation

View Details
Company
12 May 2026
Accounts Executive

Nafa Group

Mumbai

B.Com

View Details
Company
11 May 2026
AUDIT INTERN

M/S K.K.KHANNA AND COMPANY

Noida

CA Foundation

View Details
Company
19 May 2026
Fundraising Expert

MentorsWorld Ventures Private Limited

Ahmedabad

Others

View Details
Company
22 May 2026
U.S. Financial Reporting & Consolidation Manager

Karia Overseas

Ahmedabad

CA

View Details
Company
14 May 2026
Financial Analyst - Remote Finance Expert

HiringBridge

Ahmedabad

CA

View Details
Company
10 May 2026
Finance specialist

Right way solution

Ajmer

CA

View Details