You cannot take Credit of Service Tax on bank charges , being bank Charges neither cover under Input or capital Goods or Input Services. So Full Amount (includind S T on bank charges) debited under head bank Charges / Financial Charges .........
pass a entry
Page no : 2
CMA.Manikanta
(Grad-CMA &CA-Final)
(314 Points)
Replied 19 March 2010
Service Tax is Charged by Bank....as Bank Services are also covered under service tax act
ABHINAV SURELIA
( CA & CS)
(92 Points)
Replied 19 March 2010
I disagree with Dharmbeer,
you can take service tax credit on bank charges as it is a kind of input services for the companies who provide services to its customers.
Hence the company also need to be registered under service tax act.
Yeshwanth
(Chartered Accountant)
(145 Points)
Replied 19 March 2010
It should be
Bank Charges A/c Dr. 134
To Bank Account 134
But where if the bank gives you a separate invoice (With invoice number) and your firm is registered under service tax you can avail the service tax credit of Rs. 14... Hence the entry would be
Bank Charges A/c Dr. 120
ST Receivable A/c Dr. 14
TO Bank Account 134
ricky
(CA)
(92 Points)
Replied 19 March 2010
In this case 1st u Dr. BANK CHARGES with the amount Rs.134 i.e
BANK CHARGES A/C ...Dr 134
To BANK 134
(BEING BANK CHARGES CHARGED BY BANK)
and if want to get service tax adjust later ...
SERVICE TAX A/C.....Dr. 14
To BANK CHARGES 14
(Being service tax input credit adjusted )
BHAVESH
(STUDENT)
(83 Points)
Replied 19 March 2010
Both are clubbed an as Bank Charges, just like Telephone Bill
Sachin kumar
(CA Final)
(63 Points)
Replied 19 March 2010
It cannot be claimed as input credit for service tax as...
service is not used for manufacturing or business purpose
so whole the amount can be debited as bank charges.
Pratik Agarwalla
(STUDENT)
(99 Points)
Replied 22 March 2010
FULL Rs. 134 WILL BE DEBITED TO BANK CHARGES.
Rohan Adhalakha
(Finance Executive )
(53 Points)
Replied 22 March 2010
The entry can be
Bank Charges a/c Dr 154
to Bank a/c 154
Rohan Adhalakha
(Finance Executive )
(53 Points)
Replied 22 March 2010
The entry can be
Bank Charges a/c Dr 154
to Bank a/c 154
Rohan Adhalakha
(Finance Executive )
(53 Points)
Replied 22 March 2010
The entry is
Bank Charges a/c Dr. 154
to Bank a/c 154
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