Service tax on manpower services

Dear Sir,

I like to know the Accounting entry  for the following : 

Company  A  is engaged in Bagging and
Transportation of  Fartilizer produced by  Company B .

Company A  raises invoice  to Company B  by  adding Service Tax @ 12. 36 % . ( Category of Service :  Business Auxiliary Services )

Company A , in course of providing Service , takes Manpower Service from Company C  which raises Bill on Company A  by Adding Service Tax  @   12. 36 %  (  Supply of manpower )

what should be the accouting implication for the Amendment of Service Tax  Rule for Manpower supply  Agencies .

( 75% and 25 % sharing  Conception )

 

Kindly  explain  with Accounting Engry in the Books of Company A  and C  .

Would it put any change in  percentage of Revenue generation to the Government ?

 

Kinldy  Share  your Valued openion .

 

Thanks and Regards

Debashis Banerjee

 

 

 

Replies (1)

In the books of A :-

Labor charges  Dr.

Cenvat Credit REceivable Dr (25% of ST)

                 To. C

 

Cenvat Credit REceivable Dr.

                  to Service Tax payable  ( 75% of the ST)

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