No , Excess balance ( ITC ) remain after set off tax liability if any , You have to show in Current Asset , Balance sheet ,as '" Balance with Revenue Authority A/c "
Actually. ITC is always debit balance and should be shown under current assets , however for our convince , we are showing Input Tax credit under Duties and Taxes , because out put tax less ITC will get net tax payable in balance sheet only .
so I pass entry
Out put tax A/c Dr 1200 To Input tax A/c Cr. 1000 To Tax payable A/c Cr 200 now you tell under which head you are going show Tax payable ?. like Out tax under Duties and Taxes Input tax under Duties and Taxes .