Treatment Of Closing Cenvat

Last updated at Dec. 16, 2024 by Teachoo

Q4
Service Provided

Service to X Ltd
Consultancy Service	1000
Add
Service Tax @ 14%	140
Swachh Bharat Cess @ 0.5%	5
Krishi Kalyan Cess @ 0.5%	5
Total	1150

Service Received

AIRTEL
Telephone Bill	4000
Add
Service Tax @ 14%	560
Swachh Bharat Cess @ 0.5%	20
Krishi Kalyan Cess @ 0.5%	20
Total	4600

What is ?
Output Service Tax
Input Service Tax
Service Tax Payable
-a-

Particulars	Tax	Swachh Bharat Cess	Krishi Kalyan Cess	Total
Output Service Tax	140	5	5	150
Input Service Tax	560	0	20	580
Service Tax Payable	0	5	0	5
Closing Cenvat	420		15	435

Note:-
Since there is closing Cenvat of Tax and Swachh Bharat Cess which we can carry forward to next period
However,we have to Pay Swachh Bharat Cess of 5 as it does not have any input

Q4B Continuing last question,Suppose in next period,

Service Provided

Service to X Ltd
Consultancy Service	60000
Add
Service Tax @ 14%	8400
Swachh Bharat Cess @ 0.5%	300
Krishi Kalyan Cess @ 0.5%	300
Total	69000

Service Received

AIRTEL
Telephone Bill	5000
Add
Service Tax @ 14%	700
Swachh Bharat Cess @ 0.5%	25
Krishi Kalyan Cess @ 0.5%	25
Total	5750

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