Availment of Service tax Credit at the time of MIGO

[Former Member]

Hi Friends

As per our business scenario we want to avail Service tax Credit on all consumables at the time of MIGO.

I need to configure the accounting entries as follows.

<u><b>At the time MIGO</b></u>

Stores Inventory Dr 100

Service Tax Credit Dr 16

Service Tax Credit E-cess Dr 0.32

To GRIR 100

To Service Tax Clear 16.32

<u>]<b>At the time of MIRO</b></u>

GRIR Dr 100

Service tax clear Dr 16.32

To Vendor 125

Please help me out how to map/ Configure this.Please give me step by step.

Thanks and Regards

Nirmal Sitaram

[Former Member]

Hi,

In my opinion, there can be no service tax implications during any material procurement. For materials, the relevant components are VAT/CST/LST and Excise Duty. Service tax is applicable only for services procurement. Hence, the accounting entries you are mentioning do not seem to be correct.

However, during services procurement, if you are paying any service tax, you may take the credit for payment of Excise Duty (in case your manufacured goods are excise relevant).

I think, if you explain the exact business case, then furthur inputs can be provided.

Priyadarshi

[Former Member]

Dear Friends

Any one ,Please give reply - little bit urgent.

Thanks

Nirmal