Heyy all,
ABC co ltd. who trades in Goods received Works Contract Service worth 498000
so the co. accounts this transaction as follows:
Expense A/c.........................528776
To Creditor A/c.......................................498000
To Service tax (Reverse Charge)A/c..........30776
Is the above JE right?
Why cant the company debit a "Service Tax Recoverable A/c" of 30776 and then after paying the Reverse charge liability, claim the ST Recoverable as refund?
Please reply
Thanks in advance ;)