Service tax and Balance sheet

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a.v.sridhar

a.v.sridhar (Querist)
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19 September 2008 In the financial year end , some customers bills are not yet settled and we are showing these as sundry debtors in asset side. The service tax in respect of these bills will be received only in the next year. Now in the present balance sheet how can we show it since these amounts are not at all due to us or government because after receipt only government due arises.

Next year after receipt, what is the journal entry for those service tax recipt and remittance to government.

Kindly clarify.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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19 September 2008 31-03-2008 sundry debtors Dr 11236/-
To fees 10000/-
" s.t on pending bills 1236/-

1-04-2008 s.t.on pending bills Dr 1236/-
To s.t.collected 1236/-

1-05-2008 Bank Dr 11236/-
To sundry debtors 11236/-

5-07-2008 s.t.paid Dr 1236/-
To Bank 1236/-

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