Hi All,
Suppose, my services are covered under 60% abatement. I rendered services worth Rs.1,00,000/-. For what value the invoice would be raised?
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Service tax invoice issue
Replies (11)
The invoice will be raised worth Rs 1,00,000/- plus service tax @ 12.36 on Rs 40,000/-.
Now suppose, I took someone's services which are covered under 60% abatement. and the party raised the invoice as said above.
if the party's account in Tally.ERP 9 is service tax affected, then how the entry would be passed?
| Originally posted by : Ajit kumar Dubey | ||
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The invoice will be raised worth Rs 1,00,000/- plus service tax @ 12.36 on Rs 40,000/-. |
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I should mention the abatement value in the invoice.
Though not necessary, but for the purpose of better understanding you can do so.
Please mention the abatement value like this:
Services value Rs. 1,00,000.00
Add Service tax @ 4.944% Rs. 4,944.00
-------------------------
Total Rs.1,04,944.00
----------------------
Most of the rent-a-cab service providers and abatement availed service providers charge the net rate i.e after availing the abatement.
Sorry to say sir RENGARAJ R.K, but as there is no such rate of 4.944% of service tax it is always advisable to show abatement seperetly from the basic value and then charge service tax on the net value after abatement at full rate of 12.36%. If we do so it will be more transparent, meaningful and easier to understand.
Dear friend mr Dubey, It is okay. Since i am receiving lot of input service invoices showing the net rate, i have suggested the same.
I agree with you practical issue sir....
| Dr | Cr | |
| Vendor Account | 1,04,944 | |
| Expenses | 1,00,000 | |
| S.T Credit | 4,800 | |
| Ed Cess Credit | 96 | |
| SHE Credit | 48 |
Agree with Mr. Dubey...
Dear CA Chowdhury and all, what be the entry in the books od recipient of service under the reverse charge mechanism?
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