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Journal entries for Cenvat credit on Service tax

Vishwa (CA Job) (87 Points)

15 March 2008

Expenses for next 3 years = Rs 3000 + 371(ST-12.36%) = 3371 (Bill amt)

TDS dedt @ 10.30% = Rs 347 and Paid to Govt on following month.

The payment of Rs 3024 (3371-347) to be payable in 36 monthly installment for three years.i.e Rs 3024/36=Rs 84 pm

Please send the journal entries for service tax Rs 371 availed and utilised for three different years and how the expenses can be book in these three years. because it is no a prepaid exp, how tds will be tds dedt entry can be pass?.

Email: vishwa_desai @ gmail.com

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12 Replies

Shyam Lal Naik (Service) (6156 Points)
Replied 15 March 2008

The cenvat credit can be availed only on full payment. It will be prudent to keep the Cenvat Ctedit in an intermidiate account. eg.

Debit Expense A/c. (Pre tax amount)

Debit Cenvat Suspense(Service Tax)

Cdedit Party A/c (Gross Amount)

On full payment(ie after 3 years)

Debit Cenvat Availed A/c

Credit Cenvat Suspense

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Ravi Jagetiya(CA Final) (Articled assistant) (191 Points)
Replied 17 March 2008

credit to party by the amount excluding TDS.

Another option is that give credit to party by net amount( Transaction value-TDS) and create liability for deposite of TDS.

TDS liabiltiy will be nullified at the time of payment thereof.

I am agreed with the balance part of shyam's answer.

Good shyam

(Guest)

Being a mfg co we pay freight against transport of our final product to the branches on stock transfer basis, We pay service tax on freight to the Govt considering abatement thru GAR7, Can we availed cenvat credit of the same although such freight is not on a input service.Secondly some GTA charge Service Tax in their bill, evn then we are liable to pay service tax to the Govt.

(Guest)

I need the complete journal accounting proceedure on Excise means CENVAT.

(Guest)

WE ARE PAYING SERVICE TAX ON RENT TO LANDLORD FOR OCMMERCIAL USE. WE ARE DOING C&F BUSINESS AND GETTING COMMISSION FROM PRINCIPLE. CAN WE TAKE CENVAT CREDIT OF ST PAID ON RENT FROM OUR ST PAYABLE AMOUNT ON COMMISSION. PLS GUIDE

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(Guest)

dear sir

Iwant to Know about Service Tax Entries How to made service Tax Entries

Vishwa (CA Job) (87 Points)
Replied 03 October 2008

sales - debtors dr 224.72 to sales 200 to ser tax 12% rec 24.00 ; to edu cess2% - .60 ; to ecu cess- 1% - .12

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sales receipts bank dr - 224.72 to debtors Rs 224.72

--------------------------------------------------------------------------------------------

servtax payable - ser tax 12% rec - 24 dr ; edu cess 2% - .60 dr ; educ cess 1% - .12 dr

to ser tax12% payabl- 24 ; to edu cess 2% paya - .60 ; to educ cess-1% paya - 0.60

------------------------------------------------------------------------------------------------------------------

on payment - serv12% payable dr - 12 , educ cess -2% - .60 and Edu cess 1% payable dr - .12

to bank - 24.72

if cenvat credit availed and utilised

if cenvat credit availed on expenses - Rs 100

expenses dr 100 ; st 12%availed dr 12, ed2% availed dr.- 0.3, ed 1% availed dr.- .06

to bank - 112.36

---------------------------------------------------------------------------------------------------------------

cenvat utilised and paid :

on payment - serv12% payable dr - 12 , educ cess -2% - .30 and Edu cess 1% payable dr - .06,

to ST-12% availed - ; to Ed cess 2% availed - ; to Ed cess 1% availed - To bank - 12.36

(24.72 STpayable - 12.36 Cenvat STavailed = STpaid Rs 12.36)

Originally posted by :Guest

dear sir
Iwant to Know about Service Tax Entries How to made service Tax Entries

(Guest)

Dear Sir,

We are paying service tax on freight on sales thru abatement.

Please advise can we take service tax credit paid on freight.

Regards

Sharad Sanas (Article) (36 Points)
Replied 21 October 2008

Dear all

In revised cenvate credit rule - 6 can i get help on following points

1. under sub rule 3(1) & (2) if assessee is not maintaining seprate books for taxable & nontaxable services application of formula ?????

2. what about op cenvate credit balance ????, is to be taken in formula or not for clalculating balances.

(Guest)

Originally posted by :Guest
"	I need the complete journal accounting proceedure on Excise means CENVAT.	"

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Kripa Rajeev (Accountant) (20 Points)
Replied 05 December 2008

I need the complete journal accounting proceedure on Excise means CENVAT and also Vat return Entry

S.Mondal (Accountant) (127 Points)
Replied 08 September 2016

Dear All,

Pls. clear my doubt in simple words,

Q1) What is CENVAT credit "taken" and what is CENVAT credit "utilised" in Service Tax? and what are the journal entries?

Q2) We are manufacturing concern and pay the transporter for transporting materrials to dealer/distrtributor under GTA. Pay 30% S.tax (say, Rs. 30000) by GRA7 challan and gets abatment of 70% under RCM . We also purchase packing materials for prodution of final product and pay the transportation charges and pay S.tax 30% (Say Rs. 20000) under RCM by GRA-7 challan

Can we take CENVAT credit and utilies it ? If yes, than how?

Regards,

Soumen