Effect on financial statement.

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Dipesh (Querist)
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24 April 2015 Dear Expert,

I have query such as follows.
In last week of march we raised service tax invoices almost more than amount of Rs. 30000000/- but our customer are refuse to book this invoice for FY. 2014-15 because of they got bill after 4th April. They said us financial transaction of our system affect, we couldn't accept this invoices reporting for last year, raise invoice for current financial year i.e 20145-16. now matter is that we already paid tax on this invoices amount.

If there are any financial barriers or some headache for booking this transaction in last year i.e 2014-15.
Is this transaction highly affects to B/s & P/L and management accountancy of customer???? What is the contingent effect of this transaction on Customers as well as our financial transaction.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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24 April 2015 If service has been rendered before 31st March it should have been booked in 2014-15. There is no justification in citing the reason of bill received after 4th April.
As service tax has already been paid booking it in 2014-15 is the right decision.
If not accounted you will face the problem of suppression of income. For your customer accounting this invoice in 2014-15 will not affect B/s & P/L.

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