Import services

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account officer
29 Points Joined January 2011

Dear All,

Can you please explain me In import service how show Service tax effect in the books?

Currently we are show below mention entry, please said it is correct or not.

Expenses A/c (Indirect Expenses) ________________Dr

Service Tax on foreign A/c (Duty and Tax) _________Dr

            Service Tax Payable A/c (Duty and Tax) ________________Cr

            TDS A/c (Duty and Tax) ____________________________Cr

            Party (Sundry Creditor) ____________________________Cr

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On 03 July 2012 at 16:46 Report
Replies (9)
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Taxation Manager
637 Points Joined September 2008
It is not correct as the liability to pay service tax as recipient of service is at the time of payment and not at the time of booking an invoice.
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On 03 July 2012 at 16:50
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Sr. Manager
617 Points Joined April 2011

you are entitiled to take service tax credit on the transcations.

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On 03 July 2012 at 17:08
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Taxation Manager
637 Points Joined September 2008
Yes, you are entitled to take the credit of the same if it not specifically related to an exempt service or an exempt product.
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On 03 July 2012 at 17:42
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account officer
29 Points Joined January 2011

Dear Mr.Ajit

Can you pleas explaim me what is correct booking entry on Import services ..

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On 04 July 2012 at 09:55
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Taxation Manager
637 Points Joined September 2008
Related Exp---Dr To, Party A/c At the time of making the payment Party A/c---- Dr To,Bank Service tax paid on Import---Dr To, Service tax payable
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On 04 July 2012 at 10:15
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account officer
29 Points Joined January 2011

Thank Ajit

But one more quiestion, "Service tax paid on import" this account will be under "Duties & Taxes" OR "Expenses"

Because in the case of Import services, service Tax will be beared by Service Receiver..

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On 04 July 2012 at 10:47
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Taxation Manager
637 Points Joined September 2008
It should be an expense item. Now after discharging the liability if you find that you are eligible to take the credit, then credit the said expenditure and debit CENVAT Credit Receivable A/c.
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On 04 July 2012 at 12:02
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account officer
29 Points Joined January 2011

Thaks Ajit

It is so usefull for me.........

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On 04 July 2012 at 12:09
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account officer
29 Points Joined January 2011

Dear All,

As per Income tax section 10 how we trit to office Wear Allownace........

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On 20 July 2012 at 15:19


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