Availing Input Credit (Service Tax)
Consider the following situation the service provider charges service tax on the services provided, and it is not possible ย or the service receiver to ascertain the amount on which service tax is charged.
In such a case, service receiver will account only the service tax paid amount as Input Credit, to adjust towards the service tax payable.
For example, on 19-06-2016, D-Day Events received advertising services worth โน 2,00,000 from AtoZ Company on which credit of 14% on service tax and 0.5% on krishi kalyan cess were availed.
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 field Type of duty/tax.
- Select Availing Input Credit in the field Nature of Adjustment.
The Stat Adjustment screen appears as shown below:
- Debit service tax ledger.
- Enter 28,000 in the field Amount.
- Enter the service tax breakup details in the Tax Payment Details screen.
- Credit AtoZ Company. The amount will be automatically filled.
- Select the Bill-wise Details, and press Enter to return to voucher. The journal voucher appears as shown below:
- ย Press Enter to save.
