Sir,
We came to know that service tax input credit to be taken within 6 months
from the date of invoice. And payment to be made within 3 months. If
paymen is not made within 3months service tax input credit should be
reversed.
We like to take service tax input credit only after making payment to the
party but within the time limit i.e. 6 months. In this case how to account
a bill received from a sevice provider (not in partial reverse basis). ?
Whether the whole amount to be debited to expenses A/c. or there any
other ways ?
Ex : If we receiver a bill on 01-01-2015 time limit is 01-07-2015.
It contains basic 100 + ser. tax 12 = 112 for service of instrument.
Usually we will debit repairs & Maint. A/c. 100 & Ser.tax input credit 12/-
and credit party X with Rs.120/- Then whole Rs.120/- to be debited to
repairs & maint. And ser.tax input credit can be taken after making the
payment to the party. Passing JV by debiting ser.tax input credit a/c
and creditng repairs & maint.This will avoid taking input credit and again
reversing the same. Is it OK if we follow the same.
Please reply
with regards
mala
CAclubindia
