Output Tax calculation with Swachh Bharat cess

[former_member362847]

Hi,

What is the entry for Output Tax calculation with Swachh Bharat cess and explain with percentage values.

Thanks in advance.

Regards,

Babu.

[former_member198650 · Accepted solution]

Hi Babu,

The entry will be:

Customer A/c Dr 1145

Revenue A/c Cr   1000

Service tax payable A/c Cr 140 (1000@14%)

swach bharat cess payable A/c Cr 5 (1000@0.5%)

Regards,

Mukthar

[former_member362847 · Accepted solution]

Hi Mukthar,

Please correct me if i am wrong,

Actually we don't have the CENVAT credit then how we are paying to Govt.

Can you please explain the process of Input Swachh Bharat cess and Output Swachh Bharat cess with entries.

Thanks in advance.

Regards,

Babu

[former_member198650 · Accepted solution]

Hi Babu,

If you do not avail cenvat credit, in that case the entries will be:

Input tax:

Expense A/c Dr 1145 (Base amount 1000, serv.tax 14% & SBC 0.5%)

Vendor A/c Cr   1145

Output tax:

I already mentioned in my last reply. The payable amount will deposit to government.

Regards,

Mukthar

[former_member362847 · Accepted solution]

Thanks!!!