Hi
Can we take service tax credit on the prepaid expenses , which belongs to the whole year , and payment for the creditor is made in next month for whole service.
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Service tax credit can be taken for prepaid expense plz guid
Replies (5)
Service Tax credit cannot be eligible before payment.Only eligible to take credit from paid Bills/invoices.
Service Tax Credit Shall be taken on the payment basis
Further the payment should have been made on or before the last date i.e on the 30th or 31st of the previous month alone is eligible as credit.
| Originally posted by :manjula | ||
| " | Hi Can we take service tax credit on the prepaid expenses , which belongs to the whole year , and payment for the creditor is made in next month for whole service. Ans:-Service tax credit is taken on payment basis. So credit is availabe on actual payment irrespective of the period for which service is taken. |
" |
then how expense will be booked in books.
if insurance is taken on 30-09-15 for rs. 10000+2000(S.tax). then how much prepaid expense should be booked??
A) 5000 or B) 6000??
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