05 July 2011
one my client is an INDIVIDUAL assesse collects, for example rs 110.30 inclusive of service tax , tell me what accounting entries to be passed right from cash collection to payment of tax. and also whether service tax paid is an allowable expenditure.
05 July 2011
Credit the tax portion to the Service tax payable Account. Debit this account with the payment of service tax. The balance at the year end will be nil.
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