Generally, the service provider will be liable to collect and pay the service tax to the department. However, in certain circumstances, the service receiver will become liable to pay the service tax (full or partial) to the department.
On 23-4-2015 ABC Company imported Architect services for ₹ 5,00,000 from InColor Architects. ABC company is liable to pay Service Tax on imported service. The service tax liability is ₹ 61,800 and the entire amount is recipient's liability.
To record payment of service tax which is recipient's liability
Go to Gateway of Tally > Accounting Vouchers > F5: Payment
Click on S: Stat Payment.
Select Service Tax as the Tax Type.
Enter 1-4-2015 in the Period from field and 30-4-2015 in the To field.
Select Recipient's Liability in the Type of Payment.
Press Enter.
Select bank ledger in the Account field.
Select the expense ledger for arrears under Particulars.
Enter the Amount as 61800.
Press Enter.
Enter the Bank Allocation details, as applicable.
Press Enter.
Enter Narration. if required.
The Payment invoice appears as shown below:
Press Enter to save the invoice.
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