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Query over cenvat on RCM

Nov 01, 2016 at 07:48 PM


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Former Member

Need your opinion on below written matter.

For reverse charge mechanism, scenario is RCM manpower service tax @14%, Krishi Kalyan Cess @ 0.5%, Swach Bharat cess @0.5%

Accounting entry generated is

Manpower Charges A/C dr. 101(100+0.5+0.5)

Service offset A/C dr. 14(service tax)

Vendor A/C cr. 100

Service Tax Own Liability cr. 15(14+0.5+0.5)

Once the service tax own liability is paid to tax authorities

Accounting Entry generated is

Service tax Input A/C dr.

Service Tax Own Liability cr.

Question is

This above entry in bold has to be generated through manual JV or is there a process mapped in SAP for the same.

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