27 August 2016
I have difficulty in understanding the transactions in which we pay service tax. For e.g, if we are receiving a courier bill including service tax. Then will I need to enter the total amount of the bill or will I need to created separate ledger for service tax and record the bill along with service tax paid
29 August 2016
You have to create a separate ledger for service tax. Else it will be difficult to take CENVAT credit for the service tax if the full value of the bill is entered.
01 September 2016
Thanks for the reply, but the second question is what if the company is a manufacturing company and is not registered for the service tax. Then will it be necessary to record invoice with service tax amount??
01 September 2016
If you do not want to take service tax credit or CENVAT, no need to record the service tax element separately. The bill can be recorded along with service tax.
CAclubindia
