03 January 2013
FOR EXAMPLE :- IF Rs.100000 IS RECEIVED AND EVEN RETURNED BACK DUE TO FLAT CANCELLATION BEFORE COMPLETION CERTIFICATE(CC) AND AFTER CC ADV. IS BEEN RECEIVED FROM ANOTHER BUYER FOR SAME FLAT THEN, WHETHER THE EARLIER 100000 Rs. IS TAXABLE ???
Rule 6(3) deals with such cases which is as under :- Where an assessee has issued an invoice, or received any payment, against a service to be provided which is not so provided by him either wholly or partially for any reason or where the amount of invoice is renegotiated due to deficient provision of service, or any terms contained in a contract], the assessee may take the credit of such excess service tax paid by him, if the assessee,—
67[(a) has refunded the payment or part thereof, so received for the service provided to the person from whom it was received; or]
(b) has issued a credit note for the value of the service not so provided to the person to whom such an invoice had been issued.]
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