apoorv (article assistant) (35 Points)
24 February 2010can a service receiver issue a credit note for the services received and ask the service provider not to charge or make payment for such service:
For better clarity eg:
Assue I am providing IT service and at the time of billing the service receiver tells me that I neednt bother about the service tax he will issue me a cerdit note and based on that i can claim that service tax have been remitted by him
If such a thing is possible how is that a bill will be issued to him?
Vivek Jarial
(Student)
(272 Points)
Replied 24 February 2010
if you have provided service of Rs 8lakh or more it is mandatory to charges service tax. The service receiver only take the input credit of the service tax charged by service provider.
Anand
(Chartered Accountant)
(166 Points)
Replied 24 February 2010
Dear Vivek
Service Tax limit is now 10 Lacs, but after 9 Lcas registeratin is mendatory.
apoorv
(article assistant)
(35 Points)
Replied 25 February 2010
friends youdidnt get my question? I am not worried about the turnover criteria; say I have crossed the turnover limits now is the above case possible?
Arihanth Jain
(Chartered Accountant)
(1226 Points)
Replied 25 February 2010
Dear Mr Apoorv,
Sorry to mention this but on the first instance your query has contradicting things.
I see that you dont want to raise an invoice/remit tax but still want to claim the credit. Kindly give clear picture of your query. Evading service tax will be voilation of rules.
- Arihanth
apoorv
(article assistant)
(35 Points)
Replied 25 February 2010
Well the picture is like this I receive a work from an event mgt company and the company says that I neednt charge service tax since it is a Sub contract and the service tax will be taken care off by the company, and as a proof of payment the company will issue me a credit note, so in this situation what am I suppose to do, and how should the invoice be raised?????????
Bidyadhar Buxi
(Accountant)
(41 Points)
Replied 25 February 2010
Hi Apoorv,
See if the person is not bothered about Service tax and you are bide to collect the same, later you have to Deposit the collected amount of Service Tax to Govt. Still you are agree with the Credit Note, than you have to first account the Credit note against all ledger like wise you made bill to him. and when you receive the balance money, you have to deposit the same to Govt. Please keep in mind that in this case you are reducing your bill amount and the credit note can not be taken only against Service tax. The credit note may the same amount of Service tax, but you have to receive the credit note against all the ledger heads. Please revert for any further query.
Thanks,
Bidyadhar Buxi
apoorv
(article assistant)
(35 Points)
Replied 26 February 2010
Please also guide me on the provisions relating to sub contracting under the service tax.???????????
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