Service tax as a expense of company
This query is : Resolved
06 October 2015
SIR,
IN CASE OF A COMPANY IS PAYING SERVICE TAX AND NOT RECOVERING FROM ITS COSTUMER IN THIS CASE SERVICE TAX CAN BE TREATED AS A EXPENSE OR NOT.IF YES CAN WE TAKE THIS EXPENSE IN P&L.
IN CASE OF A COMPANY IS PAYING SERVICE TAX AND NOT RECOVERING FROM ITS COSTUMER IN THIS CASE SERVICE TAX CAN BE TREATED AS A EXPENSE OR NOT.IF YES CAN WE TAKE THIS EXPENSE IN P&L.
CA Mukund Sarda
(Expert)
06 October 2015
YES IT CAN BE TREATED AS AN EXPENSE.
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CA R SEETHARAMAN
(Expert)
06 October 2015
It can be treated as expense and taken to P&L.
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CA Kumar Mukesh
(Expert)
07 October 2015
In your case Since your company is not getting service tax portion charged on invoices from their customers ... i.e. paying from their pocket ... therefore service tax definitely would be treated as EXPENSE. and same will also be allowed as Expenses under section 37(1) under income tax too..
Thank You..
In your case Since your company is not getting service tax portion charged on invoices from their customers ... i.e. paying from their pocket ... therefore service tax definitely would be treated as EXPENSE. and same will also be allowed as Expenses under section 37(1) under income tax too..
Thank You..
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