Suppose we have taken credit of service tax paid on a bill in the month of april 2009 and later in may the bill got cancelled. So how to reverse the credit already taken in april. we are a stock broking firm.
Sweta Jalan (Company Secretary) (177 Points)
04 June 2009Suppose we have taken credit of service tax paid on a bill in the month of april 2009 and later in may the bill got cancelled. So how to reverse the credit already taken in april. we are a stock broking firm.
Satish
(CA Final Student)
(479 Points)
Replied 04 June 2009
You are entitle to take credit of service only after u make the payment of such bill. Making payment of bill confirms that u have availed the services and settled the bill only upon satisfaction on such services. Inspite of this fact, if the bill is cancelled and the service provider refunded u the whole amount or any amount after some deductions, you need to reverse the service tax credit and pay interest @ 1.08% per month.
Madhukar N Hiregange
(Chartered Accountant)
(39034 Points)
Replied 05 June 2009
You require to reverse the credit availed. If fully utislised interest at tge rate of 13% is also applicable.
Satish
(CA Final Student)
(479 Points)
Replied 06 June 2009
There should be a courtecy to say thanks when somebody answers.
Madhukar N Hiregange
(Chartered Accountant)
(39034 Points)
Replied 07 June 2009
Dear Satish,
When you start expecting something for what you do verytime then it is bound to end in frustration. It is better for the answerers to delcare that answering hones their thinking and helps them as much as the person whose question is bweing answered.
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