PANKAJ SHARMA (Accounts Executive) (200 Points)
01 May 2013While making provision for Audit fee at year end, how to claim Credit of Service Tax on the audit.
Auditor will give Bill After doing Audit, i.e in September or else.
But as of now, while booking provision, what is the accounting entry for booking Audit Fee taking into consideration Implication of Service Tax on Audit Fee.
Sumit Grover
(Chartered Accountant )
(3652 Points)
Replied 01 May 2013
Expense A/c Dr.
CENVAT(Deferred) A/c Dr.
To Provision for expense A/c
When bill will be received:
reverse the above entry
& pass the following entry
Expense A/c Dr.
CENVAT A/c Dr.
To Party A/c
Note: reason being Rule 4(7) of CCR,2004 which allows CENVAT on the basis of invoice only.
CAclubindia
