pls let me know about the accounting treatment for service tax both as an service provider and receiver on both cash and credit basis...
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service tax accounting treatment
Replies (4)
| Originally posted by :B.S. Rakesh Kumar | ||
| " | pls let me know about the accounting treatment for service tax both as an service provider and receiver on both cash and credit basis... | " |
hey service tax liability arises at the time of receiving payments from payee.
At the time you receive payments you should recognse it in accounts as liability.
for service provider
Cash/bank/party dr
To Service tax payable
To income
For service reciever
Expense Dr
Service tax credit a/c dr
To Cash/bank/party
Bal in service tax payable a/c is to be deposited to govt on proper due dates applicable.
Bal in service tax credit a/c is adjusted off with service tax payable for the some service provided. That credit is for input service & payable is for output service.
Pls go through the file attached.
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