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Cancellation of service tax invoice

Sonakshi Mangla (Employee) (310 Points)

08 December 2015

Hi,

An invoice was raised in month of april when the s.t rate was 12.36% but today it has been cancelled when the rate is 14%. How to make the treatment of the same in the service tax return ?

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8 Replies

CA Mehul Chudasama (Chartered Accountant) (618 Points)
Replied 08 December 2015

At the rate of 12.36%

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praveen yadav (Accountant) (22 Points)
Replied 08 December 2015

Mam rate of Ser.tax is applicable on which month you provide the service so it is 12.36%

praveen yadav (Accountant) (22 Points)
Replied 08 December 2015

Mam rate of Ser.tax is applicable on which month you provide the service so it is 12.36%

Rahul jain (LEARNING & TEACHING) (435 Points)
Replied 08 December 2015

The effect is not retrospective hence u cn raise bill of by providing st @ 12.36%

Ramanuj (Accountant.) (834 Points)
Replied 09 December 2015

Agree with us

thanks & regards

ramanuj

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Sonakshi Mangla (Employee) (310 Points)
Replied 09 December 2015

I know that the rate would be 12.36% but the issue which m facing is elaborated below with an eg.

May- Bill booked Rs. 30000 S.T 3708

Nov- Bill cancelled Rs. 30000 S.T 3708

Billing for the Month of Nov. -70000 S.T @ 14%-9800

Now in return i have to show billing as Rs.40000 (70000-30000) and S.T will automatically be computed as 5600 but in books S.T is Rs. 6092/-

I hope now you all understood my query

Dilip (chief Accounts Officer) (79 Points)
Replied 09 December 2015

As per service tax, you cannot cancell and reverse service tax directly. You shall have to approach service tax officer with request to allow the credit for tax already paid earlier but the invoice has been cancelled and giving the reasons and supporting communications.

Dilip (chief Accounts Officer) (79 Points)
Replied 09 December 2015

If you are utilising input cenvat then one more alternative I can suggest is to raise the credit note @ 12.36% dated May 2015 and revise the ST3 return. You can carry forward the cenvat credit to next return and utilize the same.