21 January 2013
I have made Sales after November,2011 for which invoice have been issued to Debtors. Invoice consists of Basic Selling Price plus Service tax@ 12.36%. Subsequently, I want to pass a bad debt entry for Debtors.
So can I adjust my service tax liability against the bad debt as per Point of Taxation Rules.
21 January 2013
As per sub-rule (1A) of rule 6 of the Service Tax Rules, 1994, which reads as follows.
“(1A) Without prejudice to the provisions contained in sub-rule (1), every person liable to pay service tax, may, on his own volition, pay an amount as service tax in advance, to the credit of the Central Government and adjust the amount so paid against the service tax which he is liable to pay for the subsequent period:
Provided that the assessee shall,-
++ intimate the details of the amount of service tax paid in advance, to the jurisdictional Superintendent of Central Excise within a period of fifteen days from the date of such payment; and
++ indicate the details of the advance payment made, and its adjustment, if any in the subsequent return to be filed under section 70 of the Act;
21 January 2013
But my querry is that, I have not paid service tax against such Sales and amount is also not recoverable from debtors. So can I adjust my service tax liability (against such sales) against bad debt.
CAclubindia
