Payment not received in full then service tax liability
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
01 May 2015
Dear Experts,
A company has done some job work for a client and raised the invoice by adding the service tax. But client has not paid the full payment by saying deficiency in service. Client has also deducted the TDS on full amount of bill and now not ready to revise the TDS Return.
Further company has not issued again revised bill. It has not deposited the service tax till date and so not filed return.
Now question is that since payment not received in full than may service tax liability be reduced on account of deficiency in service/payment received in full.
Please clear about service tax liability.
Thanks
A company has done some job work for a client and raised the invoice by adding the service tax. But client has not paid the full payment by saying deficiency in service. Client has also deducted the TDS on full amount of bill and now not ready to revise the TDS Return.
Further company has not issued again revised bill. It has not deposited the service tax till date and so not filed return.
Now question is that since payment not received in full than may service tax liability be reduced on account of deficiency in service/payment received in full.
Please clear about service tax liability.
Thanks
02 May 2015
As per Rule 6(3) of the service tax Rules, where the amount of invoice is re-negotiated, credit may be taken of excess service tax paid.In your case however, the service tax itself is yet to be paid, so prima-facie it is better to issue a revised invoice and pay service tax on the reduced amount received plus the full amount of
TDS deducted.
TDS deducted.
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