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service tax accounting treatment

Rakesh Kumar (B.Com ( H ) Pursuing CA Final ) (327 Points)

05 May 2009

pls let me know about the accounting treatment for service tax both as an service provider and receiver on both cash and credit basis...

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4 Replies

Rakesh Kumar (B.Com ( H ) Pursuing CA Final ) (327 Points)
Replied 05 May 2009

Originally posted by :B.S. Rakesh Kumar
"	pls let me know about the accounting treatment for service tax both as an service provider and receiver on both cash and credit basis...	"

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Ravi Jagetiya(CA Final) (Articled assistant) (191 Points)
Replied 10 May 2009

hey service tax liability arises at the time of receiving payments from payee.

At the time you receive payments you should recognse it in accounts as liability.

Pooja Chopda (Practising Chartered Accountant) (931 Points)
Replied 25 May 2009

for service provider

Cash/bank/party dr

To Service tax payable

To income

For service reciever

Expense Dr

Service tax credit a/c dr

To Cash/bank/party

Bal in service tax payable a/c is to be deposited to govt on proper due dates applicable.

Bal in service tax credit a/c is adjusted off with service tax payable for the some service provided. That credit is for input service & payable is for output service.