12 April 2012
for F.Y. 2010-2011 service tax shown in the balance sheet is Rs. 85000/- on which input credit of Rs. 8000/- had not set off and shown in p&l a/c. In F.Y. 2011-2012 when the payment of Service tax Rs. 77000/- is made after set off of input credit of Rs. 8000/- from Rs 85000/-. Now How to treat input service tax of Rs. 8000/- in F.Y. 2011-2012
12 April 2012
I am not getting your query fully. If your have already set off the input service tax credit by paying service tax of Rs. 77000, then what is the query.
I understand that for accounting purpose, input credit must have been shown as Current Assets in Balance Sheet. Then now while paying servic tax following entry will be passed:
Service Tax Payable A/C Dr. 85000 Input Service tax receivable A/C Cr. 8000 Bank A/C Cr. 77000
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