What will be the journal entry for service tax payment for f

What will be the Journal Entry for Service Tax Payment for following?

Service Tax paid under Service tax amnesty for the period 1st July 2007 to 31st Dec. 2012 in FY 2013-14, what will be the payable & paid entry for above.

Reply: - The payable entries for Service Tax should have been entered at the time of booking the invoice. Since service tax has been paid in this case on Services rendered; a combined entry can be passed:

Sundry Debtors a/c ……………………dr    

            To Service Tax Payable

On Payment:-

Service Tax Payable……………..dr

            To Cash / Bank

Quarterly Service Tax paid of FY 2013-14, Payable and paid entry for the same.

Reply: -

The complete entry for service tax transaction shall be :-

Services Received:-

Expenses a/c……dr

Service Tax Input a/c……dr

            To Creditor

On Services Provided : -

Debtor a/c……dr

            To Revenue

            To Service Tax Output

At the time of payment of Service Tax

Service Tax Output A/c……………dr

            To Service Tax Input

            To Service Tax Payable

Service Tax Payable A/c………….dr

            To Cash / Bank

& is this payment is allowed for deduction?

Reply:- Under Section 43 B of the IT Act,1961, any tax or duty , the payment of which is not made in the previous year in which it’s due date falls , the expenses shall be disallowed in that P.Y. The expenses can be claimed in the P.Y. when the payment is made. So, the deduction should be allowed.

Thanks Mam, What about the interest and penalty part that is paid with service tax, will that be allowed?