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

Questions by chandragenie

Showing Answers 1 - 8 of 8 Answers


  • Aug 6th, 2008

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


  • May 20th, 2009

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) 


  • Oct 31st, 2014

Journal : Dr Party
Cr Service Tax

Payment : Dr Service Tax
Cr Bank/Cash

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  • Dec 16th, 2014

its right but I want to know that when we adjust service tax in the Excise duty than how can i pass these entries.please tell me friends I passed these entries if its correct or not :-

Excise Duty Dr.
Service Tax Cr.

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Simran jeet

  • Jan 6th, 2015

purchases 50 computers on 07.05.2014 for 20000 each plus BED @ 12.36% and vat 5 %. they took eligible cenvat credit during the month of may 2012. after using they sold the old computers @5000 each on 20.12.2012 . compute the amt. required to be paid removal of the capital goods from their premises. pls your entry

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  • Mar 29th, 2015

Computer Qty 50 And Reate 20000/- Basic =100000*Ser tax 12.36%=123600=1123600+ Vat 5% ( 100000*5%=50000/- ( Total Payment 100000+123600+50000=1173600/-)

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  • Nov 26th, 2015

My question is how to enter in Tally & What is the return entry?

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  • Nov 18th, 2016

We received a Freight Bill From Vendor for Rs, 50,000/-
Journal Entry:

At the time of Booking
Freight A/C ---------------Dr
TDS Accounts Cr.
Reversal of Service Tax Cr.
Party A/c Cr.

AT Payment time

Party A/c
To Bank A/c

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