journal entry

This query is : Resolved

subhash (Querist)
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27 January 2009 i m the service provider and charging service tax from the clients,(my services exceed above 10. lcs)now i have to pay ser.tax.
now my query is can i adjust excise duty agnt ser.tax which has been paid on the Machine ,generator furniture which i m using while providing the services .on bill excise duty is charged .

2: ser. charges on tel/ mobile can also be adjusted ?

If i can, then pl. provide the journal entries to be pass on the above situations.

regards

Subhash.

Shyam Lal Naik

Shyam Lal Naik (Expert)
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27 January 2009 The answer is Yes to both the queries.

Suggested Journal entries : -

On receipt of Capital Goods:-

Debit Fixed Asset/stores etc.(Net Amount)
Debit Deferred Cenvat Credit (50% of duty and cess)
Debit Cenvet credit Avauled (Rest 50% of duty and cess)
Credit Supplier's Account

On payment of Telephone bill : -

Debit Telephone Expenses (Net Amount)
Debit Cenvat Credit Availed (Tax and cess)
Credit Cash / Bank

On utilisation of Cenvat Credit for payment of Service Tax : -

Debit Service tax Payable
Credit Cenvat Credit Availed

Message likes : 1 times

subhash

subhash (Querist)
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28 January 2009 thanks for ur valunarable suggestion.

regards

subhash yadav

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