I have a client requirement on service tax for transportation.
The transport vendor does not provide service tax as part of the invoice, but we have to take service tax credit.
For all frienght expenses, we have to pay service tax to the authorities.
Service Tax Input .......... Dr
To Service tax Payable.....Cr
and the credit can be availed only after an equivalent payment is made to the transport vendor.
Service Tax Availed .......... Dr
To Service tax Inpute.....Cr
Ques: How do I take the credit for the service tax and create a liability to be paid to the tax authorities
Ques: How can the credit be availed on payment