Hi Everyone,
I have received an invoice from my vendor on 20/11/2015 on which he charged SBC seperatly. My query is, How do i accout for this SBC amount. Do I need to expense out it? Since we cant take input credit on SBC.
For e.g. i received an invoice towards professional fees of Rs.100/- + 14% S.T.+ 0.5% SBC = Total Invoice Amount Rs.114.50/-.
Do i need to debit professional fees Rs.110.50/- , Dr. Service Tax Rs.14/- and Cr. Party A/c Rs.114.50/-.
If not then what would be the accounting treatment of this.
Please suggest.
Regards
Shibsankar Ghosh
CAclubindia
