Service tax query

dear Friends

Please guide me how to pass entry for service tax under reverse charge mechanisim including tds payment e.g. security services receives by us

 

regards

milind deoghare

 

Replies (5)
SP or SR plz mention

In the books of service receiver:-

1. Security Service Exp. A/c   Dr.

    Service Tax ITC A/c           Dr. (total service tax)

              To Service Provider A/c

              To Service Tax Payable A/c (the reverse charge portion of total service tax)

2. Service Provider A/c           Dr.

               To Bank A/c

               To TDS Payable A/c

3.     TDS Payable A/c.               Dr.

                To Bank

4.     Service Tax Payable A/c.     Dr.

                To Service Tax ITC A/c. or/and Bank A/c.

                

In the books of Service Provider:-

1. Service Receiver A/c.          Dr.

                To Sale of Service A/c.

                To  Service Tax Payable A/c. (Total ST minus reverse charge portion of ST)

2. Bank A/c.                           Dr.

    TDS Receivable A/c.           Dr.

                To Service Receiver A/c.

3. Service Tax Payable A/c.     Dr.

                 To Bank A/c.

 

 

                       

 

 

Service Receiver - Security Services

1. office maint. A/c dr

    Cenvat A/c dr

       To Sundry Creditors A/c

            TDS Payable A/c

2. Service Tax Partial Reverse Charge A/c  dr.

       To Service Tax Payable A/c

3. Sundry Creditors A/c dr.

    Service Tax Payable A/c dr.

        To Bank A/c

4. Cenvat A/c dr.

     To Service Tax Partial Reverse Charge A/c

 

The entry is okay, but need to consider the fact that ITC cannot be taken instantly for the entire Service tax charged by Service provider. This means to the extent of reverse charge the credit can be taken only upon payment of Service tax under reverse charge mechanism
would the whole amount be claimed @ 12.% under Cenvat

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 24 August 2026
Article Assistant

M/s.S.G.Salecha & Co.

Mumbai

CA Inter

View Details
Company
28 August 2026
Assistant Manager

NRS AND ASSOCIATES

Kozhikode

CA Inter

View Details
Company
24 August 2026
Semi-Qualified CA/CA Finalist - Tax, GST, Audit & Accounts

Bharat Shah & Associates

Mumbai

CA Inter

View Details
Company
09 September 2026
Semi Qualified CA / CA Inter - 2 Groups Cleared

Getmyca Consultant Pvt Ltd

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 16 September 2026
Article Assistant

MANUJ SHARMA AND COMPANY

Noida

CA Inter

View Details
Company
ARTICLESHIP 26 August 2026
CA Article Assistant/CA Drop Out/Accounts Executive

PARV & Co.

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 15 September 2026
Freelance Taxation Content Writer Intern

Interactive Media Pvt Ltd.

New Delhi

CA Inter

View Details
Company
17 September 2026
Chartered Accountant

Dass Gupta & Associates

Gurgaon

CA

View Details