about service tax return

This query is : Resolved

survesh (Querist)
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17 March 2009 sir
I am an CHA.
I purchase clearance with servicetax & sale with service tax.Some time the purchaser charges excess agency charges.agency charges are charged service tax.some time we deduct the excess agency charges and its service tax.

Eg: agency charges 1000
service tax 10.36% 104
total payable 1104
paid (800+83) 883.00

can i reverse the remaining charges with service tax (200+21) 221.00 same like purchase return and say the duration for reversing the entry
entry:(agency purchase )dt1/10/09
party ac cr 1104.00
agency dr 1000.00
st 10.36% dr 104.00

reverse entry (deduction)dt 31/3/09
party dr 221
agency cr 200.00
st 10.36 21.00

please say

Dayal

Dayal (Expert)
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21 March 2009 you will need to issue credit note to the service provider to enable him to recredit his account for the excess service tax, which if paid by him can be adjusted subsequently.

Mere reversal in your books of accounts will not give substantial rights to the service provider for the excess service tax charged.

You need to take proportionate credit, however avoid changes on the invoice, if at all you have to show corrections they can be done at the end of the invoice, to avoid disallowance if original value on the invoice are tempered.

However if you have inadvertantly carried out the corrections then you will need to seek signature of the service provider on the invoice (the same person who had signed the invoice)