Service tax on telephone bills - journal entry

This query is : Resolved

Merina (Querist)
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12 June 2013 Hi the company I am auditing has service tax registration. They need to take credit of service tax paid on telephone bills against the service tax payment to Government. Kindly let me know the journal entry for service tax on Telephone bill payment and also during the payment to service tax to Government.

CA Kapil Verma

CA Kapil Verma (Expert)
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12 June 2013 on receiving the telephone bill.

Telephone exp Dr. 100
Service tax Receivable Dr. 12
>>>>>To, Bank or Cash 112.

on charging service tax on service bill.

Party Dr. 560
>>>To Service charges 500
>>>To Srvice tax payable 60

on payment of service tax

Service tax payable Dr. 60
>>To Service tax receivable Rs 12
>>To Bank 48

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Merina

Merina (Querist)
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12 June 2013 Thanks a lot . This firm has not yet filed the service tax payments for the last two quarters (Oct 2012 to Mar 2013). Now only they came to know that service tax paid on telephone bills can be claimed. Can they claim the service tax paid on the first two quarters ( April - Sep ) on telephone bill against the service tax payment of the last two quarters? What about the telephone bills paid in previous years?

Kindly reply

CA Kapil Verma

CA Kapil Verma (Expert)
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12 June 2013 yes you can claim the previous year Bills also in next returns.

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