Service tax payment

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prakash (Querist)
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21 February 2015 suppose i paid service tax of a month and thereafter any bill cancelled of that period , now my question is how can i adjust in tally of service tax payment so that no diff show in debit & credit entry ? eg: service tax (cr). 40000 service tax pay(dr).40000 now , after cancellation of bill service tax(cr). 38000 service tx paid(dr) 40000 diff. amount. 2000

Rajesh Sharma

Rajesh Sharma (Expert)
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21 February 2015 As per Service tax Rules, in case cancellation or change in invoice, the same can be adjusted in the books once the debit/credit note is raised. In your case because of cancellation there is an excess payment of Rs. 2000/-. Kindly adjust the same while making the payment for next month i.e. if the liability is Rs. 12000/-, make the payment of Rs. 10,000/-.