Tax credit . . . urgent . . .!!!!

This query is : Resolved

saurin (Querist)
Follow

30 December 2011 If suppose the bill given by a labour contractor does not specify 10 % 1 % and 2% that is the contractor has written directly 10.3%....

Can we debit service tax recevable account by 10.3% amount .... ?

ex: bill given is
100
10.3
TOTAL : 110.3
(.3 is not at all BIFURCATED)

can i pass entry like :
Expense A/c Dr. 100
Service tax receivable A/c Dr 10.3
to Party (Labour Contractor) A/c 110.3.
?

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
Follow

30 December 2011 The entry will be as under:

Expense A/c Dr. 100
Sevice Tax Receivable Dr 10
Service Tax-EC Receivable Dr 0.2
Servie Tax-SHEC Receivable Dr 0.1
To Contractor 110.3

saurin

saurin (Querist)
Follow

30 December 2011 I KNOW THE CORRECT ENTRY WHICH IS AS PER YOU REPLY BUT I WANT TO KNOW THAT IF I PASS ENTRY WHICH IS SPECIFIED IN MY EXAMPLE WHAT WILL BE ITS IMPLICATIONS ?

Pragnesh

Pragnesh (Expert)
Follow

30 December 2011 Education cess and SAHE cess should be shown separately in invoice because it should be paid under separate accounting head.

saurin

saurin (Querist)
Follow

30 December 2011 but the wromg entry is already made. . . so what to do now?

Pragnesh

Pragnesh (Expert)
Follow

30 December 2011 It seem that you are not maintaining separate accounting code for Edu. Cess and Hig. cess. As per circular accounting should be separate to avoid mistake in calculation of cenvat credit and deposit of service tax. However if entry is already passed, then you should be very careful at the time of calculation of service tax and filing of Service tax return in case of Edu.cess and High. ed. cess.

saurin

saurin (Querist)
Follow

30 December 2011 Thanks a lot . . . :)

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

Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

RAGHUNATH KASIBHOTLA

raval umesh

Rameshkumar Jain

DSK TMC

Hemkumar

Subscribe Now

Tax credit . . . urgent . . .!!!!

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

CA Final

Article Assistant

Associate CA