Service Tax paid on the scrutiny by the department

This query is : Resolved

Guest

Guest (Querist)

30 April 2011 Dear Friends / Experts,

A, an individual has been paying service tax regularly.

There was a service tax audit in A's office and in the scrutiny, department raised a demand for Rs.8000/- payable by the assessee.

Assessee paid the amount immediately.

Query

How do we pass entry in Tally for the said Service Tax payment made pertaining to FYE 31.03.08 ?

Ans : ...............

I will wait to hear the reply.

Thanks.

CA SAURABH GARG

CA SAURABH GARG (Expert)
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01 May 2011 First of all there may two questions:

Demand includes penalty or not ?

-if paid penalty and service tax both:

book penalty as expenditure but not claim expenses for income tax purpose and service tax portion you can claim cenvat credit in the year in which it has been paid.

there is normal accounting treatment as claim expenditure and cenvet input credit.