deepak3218

 Profile Answers by deepak3218 

• Jan 16th, 2009

 

Service Tax is to be paid on services used by the company eg: Transportation Charges paid by company, first we have to calculate the Service Tax.....

Ex:
Transportation Charges= 50,000/-
As per Service Tax Act 1994 liability to pay service tax on freight charges is on the person paying freight charges.. we have to take 25% of the actual paid.

25% on actual paid (50000*25%)=12,500=00 on this amount we have to calculate

12% Service Tax= 1500/-
3% Education Cess=45/-
Total Service Tax amount= 1545/- (This amount we have to pay to Govt)

1. Create Liability
against Service Tax:

Service Tax A/c Dr 1545
Service Tax Liability A/c Cr 1545

2. After payment of Service Tax:
Bank/Cash A/c Dr 1545
Service Tax Liability A/c Cr 1545

Service Tax Liability Account may be
nullified.

Amitabh Singh

 Profile Answers by Amitabh Singh 

• Apr 21st, 2009

 

Service Tax would be credited by debiting the vendor's A/c bill wise for the whole time period of say one month or one quarter etc. and at the time of payment the Service Tax A/c would be debited by crediting the payment source A/c say Bank or cash.

Rajesh

• Mar 12th, 2016

 

2nd Jv is wrong
Service tax liability A/C Dr
To, Bank A/C Cr