04 December 2014
we had receiver of service tax , We received man power services from vendor of Rs 1000 + 123.6 = 1123.60 But we have to pay how much amount for him ? & Reverse Charges of Rs Serv Tax - 93 how to accounting in books - its liablity or expenses? Can we take Cenvat Credit -Rs 31(25%)? Please give me solutions with ledger head sir. please -----
04 December 2014
Amount Payable to Vendor is Rs.1031/- Reverse Charge Payable Rs.93/- should be booked as liability and deferred asset. Can take Cenvat Credit of Rs.31/-. Can also take Cenvat Credit of Rs.93/- once the reverse charge is remitted.
Querist :
Anonymous
Querist :
Anonymous
(Querist)
04 December 2014
sir actually we should pay him - (10000+31)=10031/- right? because my quistion we are paying Tax liablity of 93 on behalf of him .and also how to make journal entry for defered asset -?
04 December 2014
Yes. You are right. Expense Dr 1000/- Cenvat Credit Dr 31/- Cenvat Credit Deferred Dr 93/- To Reverse Charge Payable Cr 93/- To Vendor Cr 1031/-
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