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
1. Go to Gateway of Tally > Accounting Vouchers > F7: Journal .
2. Click J : Stat Adjustment .
3. Select Service Tax in the field Type of duty/tax .
4. Select Availing Input Credit in the field Nature of Adjustment .
The Stat Adjustment screen appears as shown below:
5. Debit service tax ledger.
6. Enter 28,000 in the field Amount .
7. Enter the service tax breakup details in the Tax Payment Details screen.
8. Credit AtoZ Company . The amount will be automatically filled.
9. Select the Bill-wise Details , and press Enter to return to voucher.
The journal voucher appears as shown below:
10. Press Enter to save.
'Availing Input Credit (Service Tax)' has been shared with
