Service tax payable
This query is : Resolved
09 August 2011
1. Interest on service tax is allowed as deduction according to IT ACT 1961 - ?
2.Service tax not paid in the previous year of Rs 800000 & not received the amount from parties of RS 800000
a)So is it possible that we can provide in the debit side as expense & in credit side as income?
B) As per above if we provide the amount in expenses,amount will be shown in liabilities, and if the amount is entered in the income, amount will be shown in assets.
2.Service tax not paid in the previous year of Rs 800000 & not received the amount from parties of RS 800000
a)So is it possible that we can provide in the debit side as expense & in credit side as income?
B) As per above if we provide the amount in expenses,amount will be shown in liabilities, and if the amount is entered in the income, amount will be shown in assets.
10 August 2011
1. Interest payable on Service Tax is an allowable expenditure under the Income Tax Act.
2. You are right but the income and expenses words are used for P&L A/c Items.
Better you name it Service TAx Receivable -
Asset Side (Like Debtors) and Service TAx Payable -in Liability Side (As Creditors).
2. You are right but the income and expenses words are used for P&L A/c Items.
Better you name it Service TAx Receivable -
Asset Side (Like Debtors) and Service TAx Payable -in Liability Side (As Creditors).
10 August 2011
1.Interest on service tax is due on 07/07/2008 .but the amount paid in 25/02/2011 of Rs 104000.it is allowed as deduction according to IT ACT 1961
10 August 2011
Interest can be disallowed of the earlier period however from 1.4.2010 to Feb 2011 on accrual basis it can be claimed.
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