Hi....pls help me with this query.
In case a service provider does not show the amount of service tax in his bill......and then his service tax liability will be calculated by considering that the total amt. that he collected from his client includes service tax.
E.g. If he collects Rs.12000 from his client and does not show service tax seperately in that bill.....and transfers the whole amount to his Income.
Then if I reverse this amt. considering that this amt. includes service tax.
His service tax liability wld be calculated as follows:
12000/112.36*12.36 = Rs. 1320
Now how should the liability for service tax be entered in his books of account. Pls tell the necessary A/C entries.
CAclubindia
