Entry for service tax input

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

02 December 2016 A Car dealer purchased a vehicle worth Rs.50000/- which is inclusive of Service charges Rs.1230/- and Service Tax Rs.185/- and he issued C Form for the whole amount Rs.501415/-

How to pass entry for this transaction to take service tax input?

Sandeep Dharar

Sandeep Dharar (Expert)
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05 December 2016 Purchase Dr. 50006.15
Service Charges Dr 1230
ST Dr 172.20
KKC Dr. 6.15
To Cash/Bank/creditors 51415.5

Note: → Value of SBC has been included in the car price, coz u can't claim ITC of SBC.
→ U may add the service charges to cost of assets (the above one is done only to explain u)