There are scenarios where the Service Provider charges the service tax on the services provided but it is not possible for the service receiver to ascertain the service amount on which the service tax is charged.
In this case, service receiver will account only the service tax paid amount as Input Credit to adjust towards the service tax payable.
On 06-04-2015, D-Day Events received advertising services worth ₹ 2,00,000 from AtoZ Company on which service tax is charged at @ 12.36%. The service tax paid was ₹ 24,720.
To record a journal voucher for availing input credit
Go to Gateway of Tally > Accounting Vouchers > F7: Journal
Click J: Stat Adjustment.
Select Service Tax in the Type of Duty/Tax field.
Select Availing Input Credit in the Nature of Adjustment field.
The Stat Adjustment screen appears as shown below:
Debit service tax ledger.
Enter 24720 in the amount field.
Enter the service tax breakup details in the Tax Payment Details screen as shown below:
Credit AtoZ Company. The amount will be automatically filled.
Press Enter.
Select the Bill-wise Details.
Press Enter.
Enter Narration, if required.
The Journal voucher appears as shown below:
Press Enter to save the voucher.
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