Bad debts /reversal of services

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Ravi Jagetiya(CA Final) (Querist)

03 November 2012 I am running a construction company wherein i have paid to supplier for input services Rs. 4 Lacs in FY 2011-12 but no services was actually rendered due to some disputes. Our vendor has deposited service tax on Advances in FY 2011-12, but since no bill was received by us in FY 2011-125, we have shown the same as advance payment. Now in FY 2012-13 we again receiving services from the same vendor. My question is that is it possible for my vendor to reverse the service tax liability in current year and raise me a new fresh invoice in running month including amount paid earlier of Rs. 4 Lacs.

Thanks in advance
Regards

Amol S Joglekar

Amol S Joglekar (Expert)

03 November 2012 Since your vendor has deposited service tax on advances.... is he a company having service tax payable on DUE basis? If it is so , then there is little scope for reversal... as it can not be said to be a disputed sale because you are again receiving services in 2012 -13

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