Service tax credit on gta

This query is : Open

kartik_somu (Querist)
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11 January 2012 We have made payment to GTA for which we will be liable to service tax as reverse charge basis.

We will be utilizing the current credit balance for payment and avail credit for the same.

What accounting entries have to be passed in the books for this?

U S Sharma

U S Sharma (Expert)
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12 January 2012 service tax on GTA can not be paid from input credit balance, it can be paid in cash only

you can avail credit of inward freight, outward freight is not available for input credit.

kartik_somu

kartik_somu (Querist)
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12 January 2012 We have imported software for which we have been asked to remit service tax.

Can we make payment for the same in cash?
what entry will be passed if we can make payment and avail credit of the same?

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