service tax

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17 March 2009 what is the accounting treatment of service tax on telephone expenes

Shyam Lal Naik

Shyam Lal Naik (Expert)
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17 March 2009 Do you want to take Cenvat?

If yes, debit the service tax amount to Cenvat Credit Account(Current Asset).

If No., treat the gross amount as expenses

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CA Pattanayak

CA Pattanayak (Expert)
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18 March 2009 If you r claiming CENVAT CREDIT then only telephone expenses take to expenses head and service tax to Cenvat credit accoutn.
If you don claim cENVAT credit, then Telephone expenses with Service Tax claim as Expenses.

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Guest

Guest (Querist)

18 March 2009 but is it optional for the company to expence the service tax it it does not take cenvat credit