Please do let me know about utilisation of Education cess credit which is there in accounts till 31.05.2015 and then 14% rate was applicable so now how to utilise and if not able to utilise than what would be the accounting treatment?
15 April 2016
The balance in E. Cess & SHE Cess should be transferred to Service Tax by reflecting the same in Part - I of the ST - 3 Return. In E. Cess & SHE Cess fill up item 3.2.3.4.& 3.3.3.4 as transferred to Service Tax and in Service Tax fill up item 3.1.2.6. as Transferred from EC & SHEC.
In the books of account transfer the entries by means of a normal journal entry.
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