Bijal Mehta (C.A) (27 Points)
08 June 2012Hi,
During YE 31.3.11,a company ,had raised a service invoice and payment was outstanding to be received as on 31.3.11, during the year 2011-12, the amount is not receoverable from the debtors and so Bad debt, in such circumstances, what abt the Service Tax element, whether the same shall be reversed or should form part of Bad debt
The bad debt is accounted on 31.3.12
In respect of Service tax,with amendment in POT,accrual basis is adopted and all the payments were done accordingly.
prasad
(CA Final Bcom(Taxation) Sr Audit Team Leader )
(71 Points)
Replied 08 June 2012
there is no provision of reversal of service tax in case of bad debts how ever u can claim the total amount as bad debts.It will favour the company as rate of tax is 30% compared to 12%
Bijal Mehta
(C.A)
(27 Points)
Replied 11 June 2012
While making provision for Audit fees as on 31.3.12, what would be the rate of service tax applicable for making provision as the serivce tax rate apllicable for 12-13 is 12.36% and invoice shall be raised later .
CAclubindia
