Vishal GUpta (Student CA IPC / IPCC) (44 Points)
20 March 2015Sir,
I am at Internak Audit and i am Confronting a Problem while Ledger Scrutiny.Our Client HAs paid Service tax on Repair and maintenance but they have amde the entry for the same as followings
Dr. Repair and Maintenance
Dr. Service Tax Receivable
Cr Party
So My question is that the above Entry is correct? If they can receive such service tax paid on Repair and Maintenance becaus ein my opinion the entry should be
Dr. Repair ad Maintenance
Cr. Party
CMA Poornima Madhava
(CMA)
(13112 Points)
Replied 20 March 2015
If your client is allowed to claim input service credit then a separate account has to be maintained for the same. Hence the entry. If no input service is to be claimed, then the entire amount can be debited to R&M a/c
Saurabh Maheshwari
(B.com,ACA)
(5923 Points)
Replied 20 March 2015
Ya agreed with Poornima...ST receivablle is Cenvat credit receivable.So, check whether the account has been grouped under current assets(short term loans&advances)
Atul Taneja
(Article Trainee)
(23 Points)
Replied 21 March 2015
Dinesh Chauhan
(Article Assistant)
(23 Points)
Replied 21 March 2015
CA. Mohd. Adnan Ansari
(Business)
(89 Points)
Replied 22 March 2015
CA. Mohd. Adnan Ansari
(Business)
(89 Points)
Replied 22 March 2015
CA. Mohd. Adnan Ansari
(Business)
(89 Points)
Replied 22 March 2015
CA. Mohd. Adnan Ansari
(Business)
(89 Points)
Replied 22 March 2015
Radha Lohia
(CA,CS,M.Com)
(56 Points)
Replied 19 May 2015
agree with poornima.
If your client is eligible to take service tax input than he should maintain a seperate account of input credit receivable.
If he is not eligible for the cc than the entire amount should be booked as repairs & maintenance account.
CAclubindia
