Service Tax Accounting
This query is : Resolved
28 December 2009
My query is as follows:
If a organisation can utilise only 85% of credit availed on input services, then will the bal 15% be expensed out?
For eg:
Tel exp = Rs 100
Service Tax = Rs 10
Total Bill amt = Rs 110
As per CBEC, input service credit that can be availed is Rs 8.50 only.
Will Tel exp be debited in accounts by Rs 101.50 or will it be debited by Rs 100 and Bal Rs 1.50 be kept in service tax Cenvat Credit)A/c ??
Please reply ASAP.
If a organisation can utilise only 85% of credit availed on input services, then will the bal 15% be expensed out?
For eg:
Tel exp = Rs 100
Service Tax = Rs 10
Total Bill amt = Rs 110
As per CBEC, input service credit that can be availed is Rs 8.50 only.
Will Tel exp be debited in accounts by Rs 101.50 or will it be debited by Rs 100 and Bal Rs 1.50 be kept in service tax Cenvat Credit)A/c ??
Please reply ASAP.
Arjuna Raina
(Expert)
28 December 2009
it will be debited by Rs 100 and Bal Rs 1.50 be kept in service tax Cenvat Credit)A/c ??
Entry would be
Tel exp......Dr 100
Input cr.....Dr 1.50
To XYZ 101.50
Entry would be
Tel exp......Dr 100
Input cr.....Dr 1.50
To XYZ 101.50
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