Example 2:-

Following are Services and Purchases Details of a Service Provider registered in Service Tax

 Services Details

Particulars

Amt

Consultancy Income

100000

Service Tax 14%

14000

Total

114000

 

Expense Bills

               

Particulars

Amt

 

Particulars

Amt

 

Particulars

Amt

Purchase

40000

 

Telephone Bill

3000

 

Machine

60000

Excise 12.5%

5000

 

Service Tax 14%

420

 

Excise 12.5%

7500

Total

45000

 

Total

3420

 

Total

67500

 

What is Cenvat and Service Tax Payable?

 

-a-

Service Tax Computation

 

Particulars

Amt

Total Output Service Tax

14000

 

 

Cenvat (Input)

 

Inputs

5000

Input Services

420

Capital Goods ½

3750

Total Input/Cenvat

9170

 

 

Service Tax Payable

4830

 

Note:-

Input is not available in all types of Excise duty and Service tax Bills.

To understand in which bill, Cenvat is available, lets understand Inputs, Capital Goods and Input Services in detail one by one.

-ea-

  1. Indirect Tax
  2. Cenvat Credit
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CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 6 years. He provides courses for Practical Accounts, Taxation and Efiling at teachoo.com .
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