Accounting entry

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

04 February 2016 What will be the accounting entry for service tax payable on reverse charge (full tax is to be paid by service recipient) considering CENVAT credit of swachh bharat cess not available.
1) Services provided by XYZ Co. of Rs. 10,000. Service tax rate 14% plus Swacch bharat cess 0.5%.
In this case i think swacch bharat cess will go to P&L A/c. Please guide.

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
Follow

05 February 2016 For service tax liability on reverse charge, entry will be:
CENVAT Receivable (Input Service) Dr
To Service Tax Payable

For Swachh Bharat Cess liability on reverse charge, entry will be:
Expense A/c Dr
To Swachh Bharat Cess Payable