Kamlesh (Article Assistant) (181 Points)
28 January 2014What will be the Journal Entry for Service Tax Payment for following?
& is this payment is allowed for deduction?
Thanks in advance,
Kamlesh
Ms. Sia Raman
(Chartered Accountant- Working Professional)
(198 Points)
Replied 28 January 2014
What will be the Journal Entry for Service Tax Payment for following?
Service Tax paid under Service tax amnesty for the period 1st July 2007 to 31st Dec. 2012 in FY 2013-14, what will be the payable & paid entry for above.
Reply: - The payable entries for Service Tax should have been entered at the time of booking the invoice. Since service tax has been paid in this case on Services rendered; a combined entry can be passed:
Sundry Debtors a/c ……………………dr
To Service Tax Payable
On Payment:-
Service Tax Payable……………..dr
To Cash / Bank
Quarterly Service Tax paid of FY 2013-14, Payable and paid entry for the same.
Reply: -
The complete entry for service tax transaction shall be :-
Services Received:-
Expenses a/c……dr
Service Tax Input a/c……dr
To Creditor
On Services Provided : -
Debtor a/c……dr
To Revenue
To Service Tax Output
At the time of payment of Service Tax
Service Tax Output A/c……………dr
To Service Tax Input
To Service Tax Payable
Service Tax Payable A/c………….dr
To Cash / Bank
& is this payment is allowed for deduction?
Reply:- Under Section 43 B of the IT Act,1961, any tax or duty , the payment of which is not made in the previous year in which it’s due date falls , the expenses shall be disallowed in that P.Y. The expenses can be claimed in the P.Y. when the payment is made. So, the deduction should be allowed.
Kamlesh
(Article Assistant)
(181 Points)
Replied 28 January 2014
Thanks Mam, What about the interest and penalty part that is paid with service tax, will that be allowed?
GSTR 9 and 9C for FY 23-24 as amended by Notification 12/2024 dated 10th July 2024(with recording)
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