Pass Entries In Case Of
A (Service Provider)
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Entries in books of A
Bill Issued
B 107000
To Consultancy Income 107000
To Output S/T 7000
Amt. Received
Bank 107000
To B 107000
Service Tax Deposit
Output 7000
To Bank 7000
B (Service Receiver)
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If Not taking Cenvat
Bill Received
Consultancy Exp. 114000
To A 107000
To Output S/T 7000
Payment Made
A 107000
To Bank 107000
Service Tax Deposit
Output S/T 7000
To Bank 7000
if taking Cenvat
Bill Received
Consultancy Exp. 100000
Input Cenvat Service 7000
Input Cenvat Service (Deferred) 7000
To A 107000
To Output S/T 7000
Payment Made
A 107000
To Bank 107000
Service Tax Deposit
Output S/T 7000
To Bank 7000
After paying Service tax , we can take Cenvat (next month) .
Input Cenvat (service) 7000
To Input Cenvat (Deferred) 7000