Accounting treatment of swaach bharat cess

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

Replies (1)

There is still a chance of amendment in CENVAT Credit rule for allowing the SBC credit by Central Government. So it would be better to show the SBC separatly. If CREDIT is allowed then avail it. Other wise treat it as expenses at the end of the year.

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