Service Tax

I am working in CHA,  in FY 2008-09 we have paid service tax pertains to 2007-08.   Whether i will take this amount as expenses 

Replies (6)

yes.. according to me it will be taken into accounts .......

 

 

it should depend on your accounting method i.e cash or accrual basis. in cash basis accounting you can claim at the time of payment.

Originally posted by :CHANDRASEKAR.V
" I am working in CHA,  in FY 2008-09 we have paid service tax pertains to 2007-08.   Whether i will take this amount as expenses in P & L account or it will treated as Inadmissible "


 

No service tax is not your expense and thus you cannot take this amount as your expense.

You are only a type of collecting agency (mediator) of Government.

Ya you may take Input credit of service tax collected by others from you.......

And for providing in the books the law says that CITUS OF SERVICE TAX IS ON THE SERVICE PROVIDED, but you have to deposit the service tax only when you recieve the fees from your cleint

I agree with Mr Heman Kumar since in all Govt. levies we are acting only as an agent to the Govt to collect the Tax and pay to the respective Dept.,

If you Collected it from your client then it wont be treated as expense but to be segregated from your receipts.

Since ST is payable only on Receipt form Client, you can take it as an expense.

Penalties paid on these taxes will be disallowed as per IT Act.

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