The ATM NFS charges are either received/paid by the bank. Every month the income or expenses depends upon the usage of ATM cards by the particular bank's customers vis-a-vis which ATM is used for the swipe of the cards. If the customer of bank A swipes the bank B's ATM then the Bank B has income and in turn Bank A has expense.
For the bank, the statement is received with a details of Incomes and Expenses. My question is whether we should net it out and take the net receivable/payable or should we show income and expense seperately?
If we show seperate income and expenses, then the service tax on expense can be taken as input credit only to the extent of 50%.
What is correct treatement? Please comment/guide.
CAclubindia
