Adjustments during finalisation

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Hi friends

kindly tell me how to adjust "input service tax" during finalisation of the accounts.

Bijoy

Replies (2)

If its a manufacturing industry, transfer net credit on service tax  (Input credit minus output credit) to cenvat credit account... else you can keep it as it is (Better to keep net tax credit)...

The grouping is important. If the input Tax  is certainly adjustible, then take it as asset so that it will be carried forward to the next year.( Receivable)

Otherwise take the net effect.

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