Entry for Service tax liability

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Akhilesh (Querist)
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30 April 2009 what entry is to be passed in case where where there is service tax laibility and bill date & expense is of March 09 (my co has to pay service tax on behalf of transpoeter). As service tax is paid on payment basis & for march 09 month ST is to be paid by 31/3/09 itself

atul gupta

atul gupta (Expert)
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30 April 2009 No initial exemption limit is there in case liability to pay service tax is arising only due to services of transport agencies availed. For each payment of frieght to transport agency service tax has to be paid. otherwise, subject to certain conditions, initial exemption limit is Rs. 10 lakhs if the aggragate value of services rendered in preceding FY does not exceed Rs. 10lakhs.