| If we receives a bill with service tax @ 12.36% on Rs.10000/-, the entry will be: |
| | |
| Purchase A/c Dr. | 11236 | |
| To Party's A/c | | 10000 |
| To Service Tax payable A/c (Contra-1) | | 1236 |
| (Being the Purchases made from ABC, accounted) | |
| | |
| When we make payment to Government for Service Tax, 2 entires will be passed |
| | |
| Service Tax payable A/c (Contra-1) | 1236 | |
| To Service Tax A/c (Contra-2) | | 1236 |
| ( Being the Service tax paid, accounted) | | |
| | |
| Servicce Tax A/c (Contra-2) | 1236 | |
| To Bank A/c | | 1236 |
| | |
| If we receive refund/claim from Service tax department, | |
| | |
| Bank A/c | 1236 | |
| To servicce Tax A/c | | 1236 |
| (being the refund received from Service Tax, accounted) | |
