Dear All,
I am recording a professiona fees invoice of a foriegn vendor by using special G/L. Since there is service tax liability of 10.3% on the same and the same needs to be borne by us on doing MIRO the entry is as follows.
1st dec 2010.
Professional fees 1000$
Professional fees 10.30 $
To Vendor 1000$
To Service Tax Liablilty 10.30 $
Exchange rate is 1$ is 50 INR on 1st dec .................. and 1$ is 51 INR on 1st jan
Now the service tax liabilty which is INR 515 .
When i run the foreign currency revalution on 2nd Jan then system revalutes the service tax liablity to INR 525.30 .which is incorrect.
what should i do to keep the service tax liability to 515 as per the act.
Thanking you,
Best Regards,
CA Satish Prabhu