Neeraj Joshi (Accounts executive) (97 Points)
16 March 2016
Supriyo Banerjee
(Executive Finance)
(181 Points)
Replied 16 March 2016
No. Only in case of Legal Service provided to the company, Company have to pay tax at full rate i.e. 14% on invoice value
Neeraj Joshi
(Accounts executive)
(97 Points)
Replied 16 March 2016
Sir,
My Company is a Pvt Ltd. Company. & our VAT Consultant give us invoice for professional charges without any service tax charges.
so I have to deposit S.Tax on his bill.
Supriyo Banerjee
(Executive Finance)
(181 Points)
Replied 17 March 2016
Service tax under RCM is only for Legal Service provided bu individual advocate or from a legal firm. VAT consultanat is not coming under the ambid of such rule. So no service tax under RCM should be paid.
Neeraj Joshi
(Accounts executive)
(97 Points)
Replied 17 March 2016
Sir,
Our VAT consultant is a advocate.
So now please suggeset me should I deposit S.Tax or not.
Supriyo Banerjee
(Executive Finance)
(181 Points)
Replied 17 March 2016
Yes then you have apay at full rate
Neeraj Joshi
(Accounts executive)
(97 Points)
Replied 01 April 2016
Sir
what will be accounting entry in this case of service receiver's book ?
Supriyo Banerjee
(Executive Finance)
(181 Points)
Replied 01 April 2016
1. Legal Expenses A/c .....dr 1000
To Party A/c 1000
2. Party A/c ...dr 1000
Service Tax Input (Reverse-100%) - Under Current Asset Head ....dr 140
SB Cess A/c - Under Indirect Expenses Head ......dr 5
To Service Tax Reverse (Liability) - Under Current Liability Head 140
To SB Cess Payable A/c - Under Current Liability Head 5
To Bank A/c 1000
3. Service Tax Reverse (Liability) .....dr 140
SB Cess Payable .......dr 5
To Bank 145
Neeraj Joshi
(Accounts executive)
(97 Points)
Replied 17 May 2016
Sir,
I have a Quary Again that we are paying 100% Service Tax & also taking full input credit on this.
then what is the mean of deposit S.Tax.
CAclubindia
