KKC SBC Query

The KKC and SBC accounts on your 2020 balance sheet are legacy Service Tax cess liabilities or assets. To close them, you should:

• Reconcile the balances against historical ST-3 returns and payment challans.

• Clear any outstanding liabilities by making the necessary payments to the government.

• Write off or adjust any remaining balances through a journal entry after confirming they cannot be recovered or adjusted.

• Consult a tax professional to ensure the accounting treatment is compliant, as these represent old tax records.