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 30-06-2016 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 ₹ 70,000, Swachh Bharat cess is 2,500, Krishi Kalyan cess is 2,500 and the entire amount is recipient's liability.
To record payment of service tax which is recipient's liability
1. Go to Gateway of Tally > Accounting Vouchers > F5: Payment.
2. Click S: Stat Payment.
o Select Service Tax as the Tax Type.
o Enter the Period from and To.
o Select Recipient's Liability in the Type of Payment.
o Press Enter to save.
3. Select bank ledger in the field Account.
4. Select the current liability ledger created for service tax under Particulars.
5. Enter the Amount as 70,000.
6. Select the current liability ledger created for swachh bharat cess under Particulars.
7. Enter the Amount as 2,500.
8. Select the current liability ledger created for krishi kalyan cess under Particulars.
9. Enter the Amount as 2,500.
10. Enter the Bank Allocation details, as applicable.
11. Enter Narration, if required.
The payment invoice appears as shown below:
12. Press Enter to save.
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