GeekInterview.com
Series: Subject: Topic:
Question: 18 of 69

Journal & payment for entries service tax credit

If we availing service tax credit , what is the journal entry we have to pass when we receives the bill & what is the payment entry we have to pass if we make a payment
Asked by: chandragenie | Member Since Jul-2008 | Asked on: Jul 11th, 2008

View all questions by chandragenie

Showing Answers 1 - 2 of 2 Answers
cmasunil

Answered On : Aug 6th, 2008

View all answers by cmasunil

When we are making a payment for services which include service tax, Then entry will be

    1. Paid to Port trust for haulage, tipping, sidding etc charges including Service Tax

                   Party A/c ( Port Services) Dr.   100000
                   Service tax Credit A/c      Dr.      12360
                               To Bank A/c                           12360

    2.When making any payment of service tax after availing Servcie Tax Credit

                   Service Tax  A/c     Dr.        15000
                         To Service tax Credit a/c         12360
                         To Bank A/c                               2640   

    3.When we receive refund

                   Bank A/c     Dr.          12360
                      To Srevice Tax Credit A/c    12360
     

  
Login to rate this answer.
c7831887

Answered On : May 20th, 2009

View all answers by c7831887

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/c10000
  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/c1236
If we receive refund/claim from Service tax department,
Bank A/c1236
  To servicce Tax A/c1236
(being the refund received from Service Tax, accounted) 

  
Login to rate this answer.

Give your answer:

If you think the above answer is not correct, Please select a reason and add your answer below.

Related Open Questions

Ads

Connect

twitter fb Linkedin GPlus RSS

Ads

Interview Question

 Ask Interview Question?

 

Latest Questions

Interview & Career Tips

Get invaluable Interview and Career Tips delivered directly to your inbox. Get your news alert set up today, Once you confirm your Email subscription, you will be able to download Job Inteview Questions Ebook . Please contact me if you there is any issue with the download.