Service Tax Expenses, Service Tax

[Indrajit Mondal]

Dear Sir,

I have check a company A/c and they passed a entry on Service Tax on GTA like

1) Freight/Transportation Charges Dr. (under P/L A/c)

Service Tax Espenses A/c Dr. (under P/L A/c)

Service tax on GTA under RCM Cr. (under Liabilities)

Party A/c Cr. (under Liabilities)

Now my question how Service Tax Expenses will create instead of Deferred Service Tax Input A/c is the entry is correct..

Please reply...

Posts / Replies

[Ganeshan Kalyani]

If the credit is eligible then service tax receivable account should be debited. Otherwise service tax expense account is correct. Thanks