Hello Friends
I want to know the accounting treatment of Service Tax Payable and Sunday Creditors debit balance
1. Service tax payable was stand in Liability side last year. Department has disallowed service tax amount and add back in Income. now what accounting treatment we can do in current F.Y
2. Sundry Creditors having debit balance in balance sheet last year and in current year also no purchase was made or even no purchase will be made in future years then what accounting treatment is possible for creditors debit balance.
Opinion please. It's urgent bcoz we are finalizing balance sheet of company
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Service Tax and Sundry creditors
Replies (10)
vinay why u have raised a liability in the books.
Was it matching with the returns.
Was it matching with the returns.
last year till 31st march service tax was not paid so that it is showing under duties &taxes liability side
the figure matches with your returns or not?
all figures are matched but due to non availability of funds service tax was not paid and it was shown as output service tax under duties & taxes.
Department disallowed this amount and add back in income as per section 43B. now what treatment we should do in current year for service tax output amount after disallowed by dept.
Need some clarity on second issue also . Opinion please on second issue also.
Thanks
Department disallowed this amount and add back in income as per section 43B. now what treatment we should do in current year for service tax output amount after disallowed by dept.
Need some clarity on second issue also . Opinion please on second issue also.
Thanks
OK..
PAY THE AMOUNT.
PASS REVERSAL ENTRIES.
PAY THE AMOUNT.
PASS REVERSAL ENTRIES.
1. If the service tax is not paid in the during the current financial year under consideration. No treatment is required as the same has been disallowed once and tax has been paid on the same. Further, you can make the necessary qualifications in Statutory Audit report if it is a company and Tax Audit report in case of Individual.
2. If you are not expecting transactions with the creditors having a debit balance in the present and future period you can request the management to produce evidence or steps taken for recovery and if the amount is doubtful or bad you have to write of the same.
Is there any minimum time period (For Ex. 3 years) required to write off the party or we can write off in second year also ?
generally it may so happen the tax liability is being paid within a certain specified date or as time extended by the authourities.
there is no need to reverse the entry.
tax audit report will specify respective disclosure.
there is no need to reverse the entry.
tax audit report will specify respective disclosure.
Please resolve my last doubt
1. If company claiming loss in ITR and department disallowed service tax amount which was not paid by company. No consideration was paid by the company only loss amt has decreased then how can we remove service tax from liability side what journal entry we will pass.
2. Journal entry of clearing debit balance of creditors i.e accounting entry to write off the same
1. If company claiming loss in ITR and department disallowed service tax amount which was not paid by company. No consideration was paid by the company only loss amt has decreased then how can we remove service tax from liability side what journal entry we will pass.
2. Journal entry of clearing debit balance of creditors i.e accounting entry to write off the same
Though Computing profit and gains from business and profession is under Income tax Authorities.
whatever the authorities pass entries you do not hv to pass any adjustment entry.
the querist will certainly pay off the liability next month.
Its nog srvice tax its gst.
whatever the authorities pass entries you do not hv to pass any adjustment entry.
the querist will certainly pay off the liability next month.
Its nog srvice tax its gst.
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