Service Tax Receivable

This query is : Resolved

sandeep (Querist)
Follow

07 July 2008 Dear sir,

While making payment to BSNL.We will make entry as follow:

Telephone expenses ac ----Dr.
Service Tax rece ac ------Dr.
To Cash / bank ac.

But this Service Tax Reced Ac will show Debit balance.What will be the next accounting entry & Taxation provision.

Plz tell help me.

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
Follow

07 July 2008 If you are utilising servicetax for Cenvat,
Cenvat utilisation account Dr
To Service tax recoverable

If you are not utilising, Then,

Service tax a/c dr
To servicetax recoverable