Accounting entries for reverse charge mechanism

Can anybody help me out what will be accounting entries on ST reverse charge mechanism :-

Example :- We have paid ST for Rs.120000/-( including sercharges) on the bill of our consultant ( who is a foreigner - that why we are paying ST on his behalf according to ST rules ) and we will take credit the input of the same amount.

And how to show it in ST-3 

 

Regards

Jayanta 

 

 

Replies (4)

service provider A/c         Dr     106800     

Input service tax A/c        Dr      14000

      To  Bank A/c                                         120000

 

Thanks & Regard 

Vineet Kumar

E-mail Vineet.singh @ kppmca.in

Service Tax. 120000 . To Service Tax Payable 120000 ST Payable 120000 . To Bank. 120000 CENVAT CREDIT Receivable 120000 . To Service Tax 120000

Dear Vijay

Then how Cenvat Credit Receivable will be square up. It is not a asset.Simply you have paid ST and taken Credit the same.

Am I write.

Pls advice

Jayanta

 

Dear Mr. Vineet Kumar

Then how the service provider account square up ? They will not give any payment.

Pls advice.

Regards

Jayanta

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