What should be the accounting?

Accounting Entries 511 views 1 replies

If i have paid insurance premium for company office premises for the periosd from 24 march 2013 to 23 march 2014 of INR 29500 plus srvice tax @ 12.36% of INR 3346. On 31 march 2013 how should i book my insurnac epremium exp for the year ending on 31 march 2013?

Should i account entire service tax paid as expense in for the year or i should proportionately expense off cenvat credit also in accounting?

i.e 29500*8/365=647 or 647+3646(CENVAT Credit)=4293 or 33146*8/365=726. How much should i expense off in books as on 31 march 2013? 647 or 4293 or 726?

I m eligible for CENVAT credit of INR 3646.

Please reply urgently.

Replies (1)

Hello Jaimin,

You are eligible to take Input tax credit on prepaid expenses.

Therefore, amount to be expensed is 647+ 3646=4293/-

CENVAT credit available for the year 2012-13=3646/-


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