Service tax on telephone bills - journal entry

Hi the company I am auditing has service tax registration. They need to take credit of service tax paid on telephone bills against the service tax payment to Government. Kindly let me know the journal entry for service tax on Telephone bill payment and also during the payment to service tax to Government.

Replies (4)

Following are the Journal Entries to be passed :-

 

Telephone Exps A/c             Dr.   1000

Service Tax Input A/c           Dr.      124

        To Cash / Bank A/c                      1124

( Being telephone exps. paid including Service Tax )

 

Cash / Bank A/c                                    Dr.   10000

    To Professional Service Provided A/c                       8900

    To Service Tax Collected A/c                                  1100

( Being Professional service rendered and Service Tax charged and collected )

 

Service Tax Collected A/c                    Dr.    1100

     To Service Tax Input A/c                                         124

     To Service Tax Payable A/c                                     976

( Being provision made for service tax payable )

 

Service Tax Payable A/c                    Dr.   976

    To Cash / Bank A/c                                          976

( Being Service Tax Liability paid )

 

Rate of Service tax : 12.36 %

 

Regards,

Devendra Kulkarni

 

 

Thanks a lot . This firm has not yet filed the service tax payments for the last two quarters (Oct 2012 to Mar 2013). Now only they came to know that service tax paid on telephone bills can be claimed. Can they claim the service tax paid on the first two quarters ( April - Sep ) on telephone bill against the service tax payment of the last two quarters? What about the telephone bills paid in previous years?

Kindly reply

I think if input of service tax on telephone bill can be taken only then when we are involved in same business say telephone, 

another same case 

if our CA or advocate raised a invoice agst proffesional charges and imposed service tax . can we avail its input 

 

Dear sir, i have a problem

y service provied to x  80000/- service tax 20000/-  pls solve this problem in y books and x books.

 

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