01 June 2011
Plz guide me regarding accounting entry in tally for import of service from outside india. we pay the service tax to the goverment but not charged the same from party and now we want to take the credit of service tax paid.. its urgent
01 June 2011
thnx sir,, but acually the problem is that, service tax 'credit balance' is shown in the account, now i have to pay it to the goverment, for that i debit it and when i debit the account the account become nil. so how can i take credit for the same
01 June 2011
Since As per R.2(1)(d) r.w.s 66A in case of Import of Service , ST is to be Paid by the Service Receiver. So Make Note of Entries..
Lets say Service Expense is Rs 1000 and ST is RS 100.
1) Service Expense...Dr 1000 SR ........Dr 100 To Foriegn Party 1000 To Service Tax Payable 100 2) Now Since credit can be availed hence Adjust the Same , ST Payable ...Dr 100 To ST Utilised 100
Note you have to file the Returns and Disclose the Adjustments and Cenvat So Utilised even if It is Case of Nil Paymnet in Cash since it is PAyment in Cenvat.
CAclubindia
