Reverse charge accounting treatment
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
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
-----
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.
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 -?
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/-
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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