One of my client had raised an invoice on which tax was coming out 13,29,803/- on 19/04/12.
Now due to the negotiation he canceled that invoice and raised new invoice on which service tax was 1181483/- for the same date.
Assessee had already paid service tax of 1329803 to Department before this negotiation. So now it seems that he has made access payment of 148320/-. But we are not sure about whether to consider it as advance payment of service tax or not. And if it is the case of service tax advance payment then 15 days for the intimation to Officer has already left. So what will be the next step we need to take.
Please let us know whether we can utilise this 148320/- excess payment against May month's service tax payment or not.
01 June 2012
Per my view you can show justifiable reasons for delay of 15 days and there by dept may grant delay. if it is the case then u can utilise the excess payment towards next months liability. should you desire any clerification feel free to ask. regards jay shah
01 June 2012
Yes, the excess amount paid can be adjusted with May liability. Ideal situation would have been raising the Credit note by your Vendor (without cancelling the original Invoice) to you for basic value plus service tax for the the differential amount. And this Credit note could be considered under May liability details which would automactically reduce the May liability by the differential service tax amount.
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