service tax credit entry and utilization

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This query is : Resolved

jayaram (Querist)

12 September 2009 Hi

I need info on correctness of entries and taking credit

(a) on receipt of invoice Dt. 28th Feb 09
Dr. Expense
dr. ST credit
Cr. creditor account

as of 31st march 09 this amount was not paid

(b) the above amount was paid on 25th april 09

Dr. Creditor account
cr. Bank

(c) at the time of filig quarterly ST return Credit amt for the Journal passed on 28th feb 09 was utilized and net paid

Is the above entry correct.

Thx

Ram Avtar Singh

Ram Avtar Singh (Expert)

12 September 2009 when you receive Bill

Dr. Expense
dr. ST receivable
Cr. creditor account

When you make payment to crediter after that
Dr service tax
to ST receivable

jayaram

jayaram (Querist)

12 September 2009 pl correct my understanding

1. the recipt entry is correct

2. ST receivable being current asset will
remain in balance sheet as of 31st
march 09 since the amount was not paid
to take credit

3. when payment is made I have to pass
another entry reversing ST Receivable
Dr. Service tax
cr. Service tax receivable

4. the nature of service tax a/c is
expense account

Ram Avtar Singh

Ram Avtar Singh (Expert)

12 September 2009 No.4 Its not exps account its cenvat credit
which u will utilize.

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