Edu cess & she cess of input service tax

This query is : Resolved

SATISH BHAMARE (Querist)
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24 October 2015 Dear All,

All we aware that w. e. f. 01st June 2015 Service tax rate has been changed from 12.36% to 14%, my query is regarding service tax input bills received for period April 15 to May 15 after June 15

What will be the effect of Edu cess & SH Eedc cess in books of accounts as well as service tax returns.

Warm regards,

SATISH BHAMARE

MOHAMMAD SALIM

MOHAMMAD SALIM (Expert)
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24 October 2015 In case of Excise specific notification has been issued for allowing the adjustment of ceases against the service tax amount, however no such notification has been issued for service tax. Therefore the cess paid on input services cannot be adjusted against the service tax. Such Cess may be shown as CeNVAT Credit available- Cess in return and as an asset in the balance sheet and can be adjusted against any old liability if occurs. Else you can also write it off in the accounts and book it as expenditure...