service Tax on provion for Expenses

Save Share

Join Us Follow Us Add as Source

This query is : Resolved

Report Follow Query Ask a Query

Gajender S. Verma

Gajender S. Verma (Querist)
Follow

18 May 2009 Hi,

I need to know if Service Tax is levied on the provision made for Expenses?

annapurna

annapurna (Expert)
Follow

18 May 2009 Basically service tax is levied on receipt basis. There is no service tax levy on the provision made for expenses. WHile creating the provision say Telephone expenses, you can create the provision including the service tax but you are eligible to avail the CENVAT credit once such expenses are paid with servic tax

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

Join CAclubindia WhatsApp Finance Community & stay updated with the latest TAX news, compliance alerts and important updates all in one place!