Service Tax Accounting

This query is : Resolved

Sagar (Querist)
Follow

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.

Arjuna Raina

Arjuna Raina (Expert)
Follow

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

Sagar

Sagar (Querist)
Follow

28 December 2009 Thanks for the answer....

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Summarize this with AI

ChatGPT Perplexity Claude Google AI Grok

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

Leena Rachh

RISHI LATTA

Dhananjay Singh

shubham agrawal

N N V Satish

Subscribe Now

Service Tax Accounting

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

CA Final

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

Article Assistant

Senior execiutive