cenvat credit

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what will be the treatment of service tax receivable on any expenditure like ( telephone bill) for which provision is made on 31 march 2011 and which will be payable in the month of april 2011 please suggest with the help of enrty

Replies (7)

Sir

Can any one tell me good points for the audit of cenvat credit and service tax.

My email Id is agrawal.rinky5 @ gmail.com

Cenvat credit receivable  Dr.

Telephone Exp.                 Dr.

             To    Payable Account.

dear sir in reply to the entry suggested by you for cenvat credit receivable , my question is that credit of input service can be taken only on payment of input service along with payment of duty and when telephone exp are payable in month of march how can cenvat can be taken

This is the entry in financial accounts. Credit can be availed only on payment of bill. Then the entry is

Cenvat credit   Dr.

  To Cenvat credit receivable acount

Hi,

I have a question regarding ServiceTax Input Credit on Rent paid for Employee Accomodation.

Our client is a Fully owned subsidiary of a Foreign Construction Company. There are some foreign national employees residing in rented property in India. Company has a contract directly with the Owner of the Rented Property. Owner raises invoice including Service Tax to the company for this rented property.

Now in this case, Whether company can claim Service Tax Credit on such Rent Paid?

It may not qualify for cenvat credit in the wake of new defintion of input services. Services used for  consumption of employees are outside the scope of definition.

Thanks a Lot Sir..


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