Q7
Service Provided

Service to X Ltd  
Consultancy Service 100000
Add  
Service Tax @ 14% 14000
Swachh Bharat Cess @ 0.5% 500
Krishi Kalyan Cess @ 0.5% 500
Total 115000

Expenses

AIRTEL   Purchase from Y Ltd Machine from Y Ltd
Telephone Bill 2000 Purchase 40000 Machine 60000
Add   Add   Add  
Service Tax @ 14% 280 Excise 12.5% 5000 Excise 12.5% 7500
Swachh Bharat Cess @ 0.5% 10 Total 45000 Total 67500
Krishi Kalyan Cess @ 0.5% 10 Add   Add  
Total 2300 Vat 5% 2250 Vat 5% 3375
    Total 47250 Total 70875

What is Service Tax Payable?

  Tax Swachh Bharat Cess Krishi Kalyan Cess Total
Output Service Tax 14000 500 500 15000
Less        
Input Cenvat        
On Input Services (Input Service tax on expenses) 280 0 10 300
On Inputs (Excise on purchases) 5000 0 0 5000
On Capital Goods (Excise on Machines 1/2) 3750 0 0 3750
Total Cenvat 9030 0 10 9050
         
Service Tax Payable 4970 500 490 5960

 

Note :

In case of Fixed Assets used for providing services

Input is available called Input Cenvat on Capital Goods

Input is available in 2 years (50% in year of purchase and 50% in next year)

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CA Maninder Singh

CA Maninder Singh is a Chartered Accountant for the past 14 years. He also provides Accounts Tax GST Training in Delhi, Kerala and online.