I am working in CHA, in FY 2008-09 we have paid service tax pertains to 2007-08. Whether i will take this amount as expenses
CHANDRASEKAR.V (Accounts Dept) (30 Points)
27 August 2009I am working in CHA, in FY 2008-09 we have paid service tax pertains to 2007-08. Whether i will take this amount as expenses
VARUN
(PCC STUDENT)
(523 Points)
Replied 27 August 2009
yes.. according to me it will be taken into accounts .......
vasudeo taparia
(partner)
(22 Points)
Replied 28 August 2009
it should depend on your accounting method i.e cash or accrual basis. in cash basis accounting you can claim at the time of payment.
CHANDRASEKAR.V
(Accounts Dept)
(30 Points)
Replied 29 August 2009
| Originally posted by :CHANDRASEKAR.V | ||
| " | I am working in CHA, in FY 2008-09 we have paid service tax pertains to 2007-08. Whether i will take this amount as expenses in P & L account or it will treated as Inadmissible | " |
CA Hemant Kumar
(CA, LLB (p), B.Com)
(204 Points)
Replied 03 September 2009
No service tax is not your expense and thus you cannot take this amount as your expense.
You are only a type of collecting agency (mediator) of Government.
Ya you may take Input credit of service tax collected by others from you.......
And for providing in the books the law says that CITUS OF SERVICE TAX IS ON THE SERVICE PROVIDED, but you have to deposit the service tax only when you recieve the fees from your cleint
V P Narasimhan
(Accounts Manager)
(791 Points)
Replied 18 September 2009
I agree with Mr Heman Kumar since in all Govt. levies we are acting only as an agent to the Govt to collect the Tax and pay to the respective Dept.,
CA. SUDHARSAN K G
(Chartered Accountant)
(472 Points)
Replied 19 September 2009
If you Collected it from your client then it wont be treated as expense but to be segregated from your receipts.
Since ST is payable only on Receipt form Client, you can take it as an expense.
Penalties paid on these taxes will be disallowed as per IT Act.
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