Service tax doubt

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CA
755 Points Joined November 2011

Hi all,

I had this query in Service Tax. From July 2011, ST is to be charged on accrual basis so that means once the Bill is raised, ST Liability arises. My query is what if lets say in a future date, say August 10th, the invoice is cancelled. What is the correct accounting entry to be passed in this case. The ST amount for this bill has already been paid. How do we get such amount from the Department back?

Mohit

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On 05 July 2012 at 11:32 Report
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Manager Accounts
182 Points Joined July 2009

How can you cancel the bill ,once it is raised & the service Tax of same is deposited.The bill is raised after the completion of service

 

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On 05 July 2012 at 11:53
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Student...Hoping to pass Inter
892 Points Joined April 2009

Mohit,

If the invoice is cancelled the you have to reverse the entry you recorded while entering the invoice in the books. And by cancelling the invoice you can show the same in ST return and claim refund accordingly.

 

:)

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On 05 July 2012 at 13:48
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CA
755 Points Joined November 2011

Any Circular/Notofication from the Department that clarifies this type of situation.

Mohit

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On 05 July 2012 at 15:45


CCI Pro

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