Hi friends/seniors,
Please tell me the journal entries to make while recording service tax on reverse charge mechanism w.r.t. transport charges paid to a GTA.
Suppose the bill for transport charges is for Rs 50,000 then how would I record it, the service tax paid on it would be an Input one, then how to show it as a liability since we have to pay off the same to Govt, and what about the TDS deduction on what amount and journal entries thereof.
In this regard firstly calculated Service Tax amt. Rs. 50000- TDS amount=………….. = 25% =12.36%
Same amount to be utilized as Cenvat Credit hope you make the Journal Entry. If you not got plz make the calculation sheet and forward the same. Making of Journal Entries is too easy.
Thanks for your reply Harendra,
Kindly post all the journal entries required, please answer my all queries.
CAclubindia
