service tax payment on import of service from outside india

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Arun Trivedi (Querist)
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01 June 2011 Plz guide me regarding accounting entry in tally for import of service from outside india. we pay the service tax to the goverment but not charged the same from party and now we want to take the credit of service tax paid.. its urgent

CA.Hanumantha Reddy

CA.Hanumantha Reddy (Expert)
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01 June 2011 Very simple like how you pass entry when you pay domestic bills along with service tax (i.e. Accounts payable ledg).

Arun Trivedi

Arun Trivedi (Querist)
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01 June 2011 thnx sir,, but acually the problem is that, service tax 'credit balance' is shown in the account, now i have to pay it to the goverment, for that i debit it and when i debit the account the account become nil. so how can i take credit for the same

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CA Ankit Gulgulia (Jain)

CA Ankit Gulgulia (Jain) (Expert)
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01 June 2011 Since As per R.2(1)(d) r.w.s 66A in case of Import of Service , ST is to be Paid by the Service Receiver. So Make Note of Entries..

Lets say Service Expense is Rs 1000 and ST is RS 100.

1) Service Expense...Dr 1000
SR ........Dr 100
To Foriegn Party 1000
To Service Tax Payable 100
2) Now Since credit can be availed hence Adjust the Same ,
ST Payable ...Dr 100
To ST Utilised 100

Note you have to file the Returns and Disclose the Adjustments and Cenvat So Utilised even if It is Case of Nil Paymnet in Cash since it is PAyment in Cenvat.

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Arun Trivedi

Arun Trivedi (Querist)
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02 June 2011 Thank you so much sir for your early response. i will do the same