Difference between the service tax input and st recievable
This query is : Resolved
04 May 2013
Sir,
Currently I am in the audit of service tax of acompany. Can u please tell me the difference between the St input and st recievable, also I have doubt regarding the treatment of St as ex pence and after the payment is treated as asset "
Currently I am in the audit of service tax of acompany. Can u please tell me the difference between the St input and st recievable, also I have doubt regarding the treatment of St as ex pence and after the payment is treated as asset "
04 May 2013
your query is not much clear, but may be the following info. help you.
it may be possible the company using the practice of booking the credit only after they can take credit, eg after receiving invoice, or in case of reverse charge- on or after payment is made.
so the company might be booking the credit on provisional basis as the name of
service tax receivable
and once the credit is admissible as per rule 4(7) of CCR, then they booking it as input.
it may be possible the company using the practice of booking the credit only after they can take credit, eg after receiving invoice, or in case of reverse charge- on or after payment is made.
so the company might be booking the credit on provisional basis as the name of
service tax receivable
and once the credit is admissible as per rule 4(7) of CCR, then they booking it as input.
04 May 2013
The basic difference between input credit and amount receivable is dependent upon what treatment the assessee has done in his / her service tax return.
In case, excess input of service tax is carried forward to next period then it implies that assessee will utilize the same in next period. In that case, he has not CLAIMED the amount back from service tax department and should not be treated as RECEIVABLE. The receivable can be shown only when the amount is due for recovery and there is good chance for the realisation.
In case, after utilizing the input credit of service tax, assessee realise that excess service tax has been paid by him/ her then assessee can CLAIM the excess tax paid as REFUND. As in this case, he/ she has claimed the amount as refund, this amount should be shown as service tax receivable.
In case, excess input of service tax is carried forward to next period then it implies that assessee will utilize the same in next period. In that case, he has not CLAIMED the amount back from service tax department and should not be treated as RECEIVABLE. The receivable can be shown only when the amount is due for recovery and there is good chance for the realisation.
In case, after utilizing the input credit of service tax, assessee realise that excess service tax has been paid by him/ her then assessee can CLAIM the excess tax paid as REFUND. As in this case, he/ she has claimed the amount as refund, this amount should be shown as service tax receivable.
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