St on rcm

Service receiver is a corporate entity receiving Manpower supply services from non corporate entity following are the transactions details:

Security charges: Rs.11500

25% ST                : Rs. 355.35

Total Bill amount : Rs. 11855.35

75% st : Rs. 1066.05 (st paid by Service receiver)

i wish to know accounting entries for the above transaction. Also manner in which ST-3 return to be filled. Please give your suggestions

 

Replies (2)
Accounting : Security exp a/c Dr 11500 Ccr a/c Dr. 1421.4 To creditor. 11855.35 To S T payable (RCM) 1066.05

Sunil, that means we are paying ST of 75% (1066.05) & taking cenvat credit of full 25% (355.55) & 75% (1066.05) amount. Is this so, can we take cenvat credit of full amount Under Reverse charge mechanism?

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