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Service tax reverse charges

Queries 801 views 7 replies

Hi,

what is the entry for service reverse charge?

is this payment charged to revenue?? i.e debited to profit and loss account?

thanking you

Replies (7)
Hi Entry of Reverse Charge. Say Security services received @ Rs. 100000.So service tax @ 12.36%=12360.Now liability of SR is 75%.i.e. Rs.9270 inclusive of cess. Entry CENVAT CREDiT Dr. 12360 Security Service Dr. 100000 To TDS @ 1% 1030.90. (Assuming ind.)
Contd. To Party. 102059.1 To ST payable 9270 Thanks.

THANKS

 

Hi Is it correct to take CENVAT Cridt for reverse charges? i need clarification thanking you

if you are eligible for taking credit on the type of service, you can definately take input credit. please ensure that you take input credit after making the service tax payment

Hello,

is it after abatment  value or on full value of serivce

 

thanking you

Input Credit should be taken by SR on full value as given in above entry.


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