Service tax accounting

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Somenath Sen (Querist)
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04 July 2013 in case of unregistered service provider, a company need to pay service tax on the basis of 12.36% of (25% of invoice value), but to provide for the liability in book what entry to be pass?

Pradeep Nainawati

Pradeep Nainawati (Expert)
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04 July 2013 There is no such provision. Please tell ur query with all details.

Somenath Sen

Somenath Sen (Querist)
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05 July 2013 my query is-

if a company having registration under service tax act avail any service from the service provider who is not a holder of service tax regn no, then the company need to pay 12.36% of (25% of the total invoice value raised by unregistered service provider), then how the accounting to be done by the company in its books.

Pradeep Nainawati

Pradeep Nainawati (Expert)
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05 July 2013 There is no provision like this in Act. Kindly tell the nature of service than i might be able to answer your query.

Under reverse charge ST is required to be paid by service recipient under transportation of goods by road service at 25% as there is abatement of 75%.(Service recipient should be specified person as mentioned under Rule 2(d) of Service tax rules 1994.

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