sahil (Executive) (102 Points)
22 September 2014Hi,
We have made a provision for completness of books of accounts as actual bill of vendor not revcieved yet and Supply of manpower expense on which reverse charge is applicable. So my question is wether we have to account for the Service tax liablility on the provision.
Sangeet Agarwal
(Article Assistant)
(120 Points)
Replied 22 September 2014
Dear Sahil ji,
In my opinion you shall definately book Service tax for the said expense. The total of Expense/ liability shall be incl. of service tax.
Like for example, when you book Provision for Audit Fees(though it is not reverse charge), you along with the Fees book service tax as well, whether or not you received the bill or even if the audit remains in complete.
Therefore, you shall surely book ST otherwise your true expense will not be recognised as ST too is an expense for you.
Regards,
Sangeet Agarwal
sahil
(Executive)
(102 Points)
Replied 23 September 2014
Then wether I need to deposit the reverse charge share of ST
Sangeet Agarwal
(Article Assistant)
(120 Points)
Replied 23 September 2014
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