SERVICE TAX ON CREDIT NOTE ISSUED TO DEBTORS

Pankaj Arora (Learner) (3134 Points)
Replied 20 April 2011

How can you adjust service tax payable Rs.60000/- with credit note because credit note amount with party sales a/c has settled. And you also mention that there were nil liability in march… so you have to remit service tax to government which you raise again in march….

sheetal (CA) (105 Points)
Replied 20 April 2011

Originally posted by : Pankaj Arora
	How can you adjust service tax payable Rs.60000/- with credit note because credit note amount with party sales a/c has settled. And you also mention that there were nil liability in march… so you have to remit service tax to government which you raise again in march….

Why not we can raised the credit note for services not provied for particular period . And there is nil INPUT SERVICE TAX CREDIT is nil and not nil service tax liablily.

Pankaj Arora (Learner) (3134 Points)
Replied 20 April 2011

so how you saying that….

Agian in MArch the another sales bill raised and ST payable is Rs 60000/-

we adjusted the ST payable agianst the Credit note .

sheetal (CA) (105 Points)
Replied 20 April 2011

Originally posted by : Pankaj Arora

so how you saying that….

Agian in MArch the another sales bill raised and ST payable is Rs 60000/-

we adjusted the ST payable agianst the Credit note .

I think u have not understood the question properly . forget it . Can any other fellow solve my query?

U S Sharma (glidor@gmail.com) (21056 Points)
Replied 20 April 2011

Originally posted by : sheetal

Hello,

The comapny raise the sales bill in july 2010 and paid service tax on it

In March credit note issued to the party against the above mentioned bill and ST on credit note is 90000

- service tax bill raised in july , tax paid in july , payment received in july and in march u saying that service not provided, u had time to report the same upto return period, even u had option to revise ur return of apr-sept upto jan, which u did not made, and issue of credit note in march saying that service is not done? who will belive this argument? visit your st department and make them understand your nature of business and the facts.

- as on now after 14 days of either invoice or payment, no such adjustment is possible.

No service tax input credit left in the month of March.

Agian in MArch the another sales bill raised and ST payable is Rs 60000/-

we adjusted the ST payable agianst the Credit note .

But quetion is

While preparing the ST3 where to write the ST on credti note which is adjusted agianst ST paybale

in 4A (i) os ST3

if we put the amount in 4a(i)(iii) i.e in column of " adjustment of excess amount paid earlier and adjusted in this period under Rule 6(3) of ST rules.

What should be write in 4B col i.e. what is the Soure document no and period

While filing the ST3 it is asking all above details.

or

shall we write the service tax on credit note which is adjusted in col of 4A(I)(ii) i.e "by CENEVAT credit

Please if anybody knows reply

Thanks

sheetal (CA) (105 Points)
Replied 21 April 2011

Originally posted by : U S Sharma

Originally posted by : sheetal

Hello,

The comapny raise the sales bill in july 2010 and paid service tax on it

In March credit note issued to the party against the above mentioned bill and ST on credit note is 90000

- service tax bill raised in july , tax paid in july , payment received in july and in march u saying that service not provided, u had time to report the same upto return period, even u had option to revise ur return of apr-sept upto jan, which u did not made, and issue of credit note in march saying that service is not done? who will belive this argument? visit your st department and make them understand your nature of business and the facts.

- as on now after 14 days of either invoice or payment, no such adjustment is possible.

Sales bill is raised for the period july to March as per agreement between tow parties.

And No payment has been recd but ST paid because Sales bill is to Associate Enterprise.

In the middle of month no service has been provided due to some matter all legal proof are there So we can prove that in specified period the service is not provided and credit note is issued to party.

As per your answer it is correct we have to inform to Ofiicer about credit note when it is raised i.e. in the month of march.

But we can not revise the service tax return because within 60days we have to file the Service tax return and service not provied is the period comes after September and credit note is raised in teh month of March as per legal decision.

Thanks for your answer

U S Sharma (glidor@gmail.com) (21056 Points)
Replied 21 April 2011

why not u renew the service contract in place of issue of credit note? this will offload major hassle for your paper work.

Latha.N (Accountant) (28 Points)
Replied 09 April 2016

The company issued credit note to debtor for the Nov-15 sales in mar-16.

In ST return we enter the credit note ass. value in 'B1.12 -any other amount claimed as deduction' and we have paid the 14% service tax for the deducted ass.value but in case of SBC we have paid the actual assessable value of mar-16 sale. Because in Nov there is no cess, so we cannot deduct the cess amount.

Now, the problem is the cess amount shows in payable service is lesser than what we have paid in march challan.

Please if anybody knows reply.

Thanks

Vijaya Kumar (Accounts Executive) (26 Points)
Replied 21 April 2016

The company issued credit note to debtor for the Nov-15 sales in mar-16. In ST return we enter the credit note ass. value in 'B1.12 -any other amount claimed as deduction' and we have paid the 14% service tax for the deducted ass.value but in case of SBC we have paid the actual assessable value of mar-16 sale. Because in Nov there is no cess, so we cannot deduct the cess amount. Now, the problem is the cess amount shows in payable service is lesser than what we have paid in march challan. Please if anybody knows reply. Thanks