Treatment of Service Tax
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
10 February 2010
I would like to Know the Treatment of Service TAX in the Following Case.
My Client is an Electrical Contractor, He secured a contract in May-09 by offering a price which is inclusive of all taxes,he opted for Composition in Service Tax, and he invoiced to the client, and paid service Tax on Supply bill only, after verification i advised him to pay the balance tax on Supply portion also as to follow the Latest Notification on Turn Key Projects, Now My Doubt is, the amount paid later as service tax on Supply portion is to Claim as Expense, or Should I reduce it from Sales....
My Client is an Electrical Contractor, He secured a contract in May-09 by offering a price which is inclusive of all taxes,he opted for Composition in Service Tax, and he invoiced to the client, and paid service Tax on Supply bill only, after verification i advised him to pay the balance tax on Supply portion also as to follow the Latest Notification on Turn Key Projects, Now My Doubt is, the amount paid later as service tax on Supply portion is to Claim as Expense, or Should I reduce it from Sales....
11 February 2010
If the accounts are not yet finalised then the service tax paid later should be reduced from sales else the tax paid later should be claimed as an expenses.
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