Service tax paid but invoice was cancelled (Service Tax)

This query is : Resolved

suresh

( Author )
14 October 2011

Please guide me how to make journal entry for the cancelled invoice. But for the Particular invoice we had paid service tax.
How to make a entry and how it will be appear in st-3 and how can i get refund. Above said transaction how i can use it erp 9 3.2 ver. Please guide me.

with regards
B.suresh
9940430919

PUNEET GOYAL

( Expert )
14 October 2011

1. How to get refund or adjusdted service tax paid?

Ans: As per rule 6 (3) of service tax rules 1994 as amended by NN 26/2011 dtd 31.03.11 and clarification by point no 11 (ii) of circular no JS TRU (II) DTD 31.03.11, you can adjust excess service tax deposited by you against the service tax liability of subsequent period provided that:

a. You have refunded the payment received from the customer, if any

or

b. You have issued a suitable credit note to the customer.

2. How to make journal entry?

ans: You should raise the credit note instead of cancelling the invoice.

3. How to show in ST-3?

ans: you should mention the net amount in st-3 after deducted amount of credit note.