what is the service tax implications in case of following entry
one of the director's foreign travel ticket should be booked by company and also reverse at the same time and differece between the debit and credit has been transferred to travels accout .
DIRECTORS TRAVEL -INLAND Dr. 30,865.00
SERVICE TAX Dr. 177.00
EDUCATION CESS ON SERVICE TAX Dr. 4.00
DIRECTORS TRAVEL -INLAND Cr. 30,946.00
TRAVEL AGENCY A/C Cr. 100.00
IS THIS CORRECT ENTRY?
should service tax not be reversed on reversal of invoice ?
should only the amount which is expence out be reversed on the reversal ?
pls give me answer ?
The One Says:
Is the Service Tax amount accurate first of all? How are you calling it Directors' Travel Inland if its foreign travel? (I am an auditor and these questions are bound to come up)
If you are reversing the entry ie for cancellation of ticket then just reverse whatever entry you have passed earlier (depending on whether there are any cancellation charges - then entry would change)
Other opinions are welcome as always. Hope if helps.
Regards.
CAclubindia
