Shaik ( M.com,IC(W)AI - Inter) (723 Points)
13 December 2010one of firm is deducted service tax on advertisement @ 1.55, how they can it be ?
Ex. inovice is DC Add. 44, 000.00
(+) service tax on 1.55 682.
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44,682.
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as my knowledge service tax must be 10.30 % but they did like @ 1.55 ?
Please clarify this any one , thanks to them 
Ganesh
(CA)
(111 Points)
Replied 14 December 2010
Dear Shaik,
I suggest you check with the firm. I don't see any classification at this rate of Service Tax even after abatement.
Thanks,
Ganesh
Neeraj Paul
(Accounts Executive)
(106 Points)
Replied 28 December 2010
Hi,
All leading newspapers give 15% commission to all advertisement agencies.
So when advertising agencies create an invoice they charge service tax on their profit margin.
which is the case in here. 15 % of 10.30 ( service tax ) = 1.55 %.
Hope this solve your query.
Thanks
Shaik
( M.com,IC(W)AI - Inter)
(723 Points)
Replied 28 December 2010
thank you sir but how to make entry for these transaction, if you don't main please explain it.
Neeraj Paul
(Accounts Executive)
(106 Points)
Replied 29 December 2010
Debtor A/c- 44682
To Sales A/c- 44000
To Service Tax A/c. 682
Shaik
( M.com,IC(W)AI - Inter)
(723 Points)
Replied 29 December 2010
every month we pay service tax, then we should claim service tax input,how i can get input credit this amount ?
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 29 December 2010
| Originally posted by : Shaik | ||
 |
every month we pay service tax, then we should claim service tax input,how i can get input credit this amount ? |
 |
whole the topic get changed now, request all to mention their role / status while posting the query,
the query was understood as shaik is accountant or CA and his client is vendor, who has issued the service tax invoice and he has to account it in books ............ but the scenerio got changed now, shaik is service receipent .............. no idea if he will reflct tomorrow that he is banker only to service receipent
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 29 December 2010
to claim the input credit on advertisement, please mention your taxable output service, and is it direcrly related for that service, then only you can avail credit !!
Shaik
( M.com,IC(W)AI - Inter)
(723 Points)
Replied 29 December 2010
Dear Sir,
actually My Company is provided Fitness Service to Our client, on that we charge them service tax on their invoices so this is our taxable output service and we get input service tax on advertisement and other payments like installations , printing and professional charges.
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 29 December 2010
advertisement .debit ................44000
service tax debit .............................682
bank / creditors account ............. credit ................44682
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 29 December 2010
| Originally posted by : Shaik | ||
|
|
Dear Sir, actually My Company is provided Fitness Service to Our client, on that we charge them service tax on their invoices so this is our taxable output service and we get input service tax on advertisement and other payments like installations , printing and professional charges. |
|
their invoices means client issue u invoice? it should be "our invoice" i hope
CA Vibhash Kumar Sah
(Associate Manager)
(710 Points)
Replied 04 January 2011
| Originally posted by : U S Sharma | ||
|
|
advertisement .debit ................44000 service tax debit .............................682 bank / creditors account ............. credit ................44682 |
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So finally its clear that, Input Credit of Service Tax can be taken on the service tax paid on Advertising expenses. For the common services like Audit Fees, Advertisement etc. direct co-relation to output Service is not required.
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 04 January 2011
| Originally posted by : Shaik | ||
|
|
Dear Sir, actually My Company is provided Fitness Service to Our client, on that we charge them service tax on their invoices so this is our taxable output service and we get input service tax on advertisement and other payments like installations , printing and professional charges. |
|
the discussion was made on the basis of this post, if his R/O and excise department allow them, why we should bar?
CA Vibhash Kumar Sah
(Associate Manager)
(710 Points)
Replied 05 January 2011
| Originally posted by : U S Sharma | ||
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Right and accepted. |
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