08 May 2009
As we know service tax is paid only when consideration for service is received. if no consideration is received no service tax liability arises.
At the time of billing we credit service tax account and provide service tax liability in the books of account whereas there is no service tax liability arises at the time of billing.
Please suggest proper accouting treatment of service tax so that liability can be created in the books of account only when it actually arises.
08 May 2009
on bill booking we are crediting service tax payable account in the books of account i.e we are creating liability but actually there is not liability.
if service tax payable accout is showing credit balance as on balance sheet, how should it be disclosed in the finacial statement at the balance sheet date.
CAclubindia
