16 August 2010
I WANT TO KNOW ACCOUNTING EFFECT(dr & cr) FOR ALL TYPES OF SERVICE TAX, INWARD & OUTWARD IN ALL CASES INCLUDING TRANSPORT.
case: 1. service tax - inward (on other service) 2. service tax - outward (on other service) 3. service tax - inward (on transport service) 4. service tax - outward (on transport service)
16 August 2010
Better you open these three accounts
1. Input Service Tax account in Asset side (I) 2. Output Service Tax account in Liability side (O) 3. Service Tax Payable A/c on liability side (P)
whenever you make pjv for services availed, debit I for service tax component. whenever you make sjv for seervices rendered, credit O for service tax component. At month end review the receipts against services and transfer corresponding amount of O to P. Similarly, review the payments against services received and transfer correspondingg amount of I to P. If there is credit balance in P(an ideal situation), then you have to deposit service tax in due course.
You may open separate IOP accounts for respective servies as per your convenience/requirements.
CAclubindia
