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Cancellation of invoice

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Querist : Anonymous

Querist : Anonymous (Querist)

16 August 2012 Dear Experts

We raised a service tax invoice on our client in 2010-11. For some internal problem, the client could not book the same in his books. Now when asked for payment, he wants a new invoice dated in current FY 2012-13.

We have already paid tax on the original invoice.

Is it possible to cancel the original invoice against credit note and raise fresh invoice in current FY.

What are the implications and the way out available to me.

Thanks regards

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)
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16 August 2012 The accounts are already audited by the auditor.
The only possible remedy is to issue a credit note to the party and debit the service tax account with the same amount.
Issue a Fresh invoice in the current year with the service tax. There will not be any impact on the service tax during the year.

Querist : Anonymous

Querist : Anonymous (Querist)

16 August 2012 Thanks Amit.

There will be a minor liability for the differential service tax (diff. between 10.24% and 12.36%)...that we can recover from the client.

But does Service Tax Act allow me to issue a credit note against such an old invoice. Isn't there any time limit for issuing such cr. notes

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