SERVICE IN P & L A/C
This query is : Resolved
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.
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.
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.
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
Click here to login now
Similar Resolved Queries
Unanswered Queries
- About TDS & Income Tax
- Pass word to open justification report for Q1 for FY 2026-27
- Section 194JA & JB Income which ITR Form to use
- PPF interest-As Exempt Income disclosure
- Scrutiny and reopening of past returns
- Tax on Deemed Capital Gain
- Booth for sales promotion
- F & O PROFIT REPORTING FOR AY 2026-27
- Type of Capital Gain
- Regarding ITR filing with more value than showing in AIS/TIS
- Difff in ais receipts and gst turnover
- ITR-3 File/Error Found
- Exiting partner in partnership firm in gst portal
- Taxability of credit in canara bank ET & T section (NRO)
- Consequences of Non-Deduction of TDS under Income Tax???????????????
- TDS on Rent received on redevelopment of building
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- Upload Level ValidationITR3Category of Defect B/D
- PF Taxable Income
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
