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Can we write off service tax payable from our books

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

29 March 2012 We have outstanding balances from 2004-05 from our customers, Now they are considered bad and are to be written off. Can we write off service tax payable charged at the time of invoicing in respect of above services.
(mind it huge funds are involved)

Please give me link to any related case law.

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)
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29 March 2012 Yes, you can write off the amount of service tax also, since the service is provided on or before 2004-05, the liabilty of service tax arise on the receipt of the payment of service. you have not collected any money from the party in this regard.

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Querist : Anonymous

Querist : Anonymous (Querist)

29 March 2012 Hi Amit,

I know in the back of my mind that its all correct and fair.
But since huge sums are involved, I wanna play safe.
So it will be helpful if you can link it to a specific section or any case law

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