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Cancellation of service tax invoice

Sonakshi Mangla (Employee) (310 Points)

23 December 2015

Hi,

We have raised certain service tax invoices on which we have not received payment till date. Can we reverse the service tax invoice along with the service tax? Kindly give justifiable supporting to your answer.

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4 Replies

Ravi Kumar Somani (Indirect Taxes Specialization) (3893 Points)
Replied 23 December 2015

There is no provision in the service tax law for reversal of ST in case of delayed debts or bad - debts. Since the service i is provided therefore levy under section 66B has attracted and the said transaction is liable for ST. The only saving is that in case there is a deficient in provision of service or if there is any renogiation in price leading to non-receipt of monies in that cases ST can be reversed under rule 6 (3) of Service Tax rules, 1994 by issung a credit note.

Regards,

Ravi Kumar Somani