SERVICE TAX ON CREDIT NOTE ISSUED TO DEBTORS

Page no : 2

CA Prakash N (Head - Indirect Tax (GST & FTP)) (373 Points)
Replied 21 April 2016

Dear All Rule: Rule 6(3) of Service Tax Rules provides proviso to Avail credit on Credit note and also to adjust again liability. Disclosure : Credit taken shall be adjusted against liability by showing it in Row E4 of 'paid sheet' in ST 3 returns. Please note 1. Do not deduct credit note from Sales in ST 3 2. SBC credit can not be availed. May be you can go for refund or

Upgrade to CAclubindia Pro. Subscribe Now!

CA Prakash N (Head - Indirect Tax (GST & FTP)) (373 Points)
Replied 21 April 2016

Dear All

Hope this would help you

Rule: Rule 6(3) of Service Tax Rules provides proviso to Avail credit on Credit note and also to adjust again liability.

Disclosure : Credit taken shall be adjusted against liability by showing it in Row E4 of 'paid sheet' in ST 3 returns.

Please note

1. Do not deduct credit note from Sales in ST 3 2. SBC credit can not be availed. May be you can go for refund or expense it off if it is very nominal.

Revert for any clarifications at prakash @ hiregange.com