Service Tax under RCM Method

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Sandip Gore (Querist)

21 June 2016 How much service tax to be changed in the bill in case of RCM method applicable? Also please explain how will be the entry in Tally?

Rupesh Jain

Rupesh Jain (Expert)

21 June 2016 its according to the services , and for entry if you are eligible to take cenvat then you dr, the cenvat credit a/c

otherwise you can debit the same exp. head for you received the bill. or service tax paid on exp(RCM)

Sandip Gore

Sandip Gore (Querist)

21 June 2016 Sir, Thanxs for reply but got confused. We are contractor and provide service to Company. We are raising bill of Rs 500000/- plus Service Tax @ 15% on 40% of Bill ...i.e. Rs 30,000/- Also we are paying service tax after adjustment of cenvat credit. please tell me how bill to be booked Dr Company 530000 Cr Contract A/c 500000

Sandip Gore

Sandip Gore (Querist)

Sandip Gore

Sandip Gore (Querist)

21 June 2016 or only 50% of ST i.e. 15000/- to be booked?

Rupesh Jain

Rupesh Jain (Expert)

22 June 2016 party a.c
to servcie recd
to service tax payable

service tax payable
to cenvat a/.c
to bank a/c

Soumitra Basu

Soumitra Basu (Expert)

24 June 2016 WHEN YOU RECEIVE SERVICE TAX, YOU HAVE TO CREDIT SERVICE TAX. AT THE TIME OF PAYMENT OF SERVICE TAX TO THE SERVICE PROVIDER DEBIT SERVICE TAX ACCOUNT. THE NET AMOUNT YOU HAVE TO DEPOSIT IN THE CREDITED OF CENTRAL GOVERNEMENT AND SUBMIT RETURN ACCORDINGLY.

IN THE SAME MANNER WHEN YOU PAY SERVICE TAX TO THE SERVICE PROVIDE

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