If registered service provider has paid total amount of Rs 1000 inclusive of Rs100 as service tax and he does not avail any credit, then how much should be charged as an expense.
Does the amount to be charged as an expense depends upon whether the registered service provider avails any credit or not ?
First of all any bill which mentions that it is inclusive of taxes normally is to be accounted on gross basis. The accounting treatment is normally decided by the reciver of service and not the provider of service. In this case total as expenses to be accounted.
O P Bagla & Co LLP
New Delhi
CA Inter
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