Treatment Of Closing Cenvat

Last updated at April 16, 2024 by

Q4
Service Provided

Service to X Ltd  
Consultancy Service 1000
Add  
Service Tax @ 14% 140
Swachh Bharat Cess @ 0.5% 5
Krishi Kalyan Cess @ 0.5% 5
Total 1150


Service Received

AIRTEL  
Telephone Bill 4000
Add  
Service Tax @ 14% 560
Swachh Bharat Cess @ 0.5% 20
Krishi Kalyan Cess @ 0.5% 20
Total 4600


What is ?
Output Service Tax
Input Service Tax
Service Tax Payable
-a-

Particulars Tax Swachh Bharat Cess Krishi Kalyan Cess Total
Output Service Tax 140 5 5 150
Input Service Tax 560 0 20 580
Service Tax Payable 0 5 0 5
Closing Cenvat 420   15 435

Note:-
Since there is closing Cenvat of Tax and Swachh Bharat Cess which we can carry forward to next period
However,we have to Pay Swachh Bharat Cess of 5 as it does not have any input

Q4B Continuing last question,Suppose in next period,

Service Provided

Service to X Ltd  
Consultancy Service 60000
Add  
Service Tax @ 14% 8400
Swachh Bharat Cess @ 0.5% 300
Krishi Kalyan Cess @ 0.5% 300
Total 69000


Service Received

AIRTEL  
Telephone Bill 5000
Add  
Service Tax @ 14% 700
Swachh Bharat Cess @ 0.5% 25
Krishi Kalyan Cess @ 0.5% 25
Total 5750
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CA Maninder Singh is a Chartered Accountant for the past 14 years. He also provides Accounts Tax GST Training in Delhi, Kerala and online.