Reversal of service invoice

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This query is : Resolved

LALY HAREENDRAN (Querist)

22 June 2016 Dear Sir,

We have issued a Service Tax Invoice in the year 2013-14 with the Service Tax Rate @ 12.36%. The Customer has not paid the bill amount till date. We have already paid the Service tax as per the Invoice Issued. Now customer is asking for a current dated invoice for the same for making payment as they have not accounted the old invoice. Is it possible to get us the Credit of the Service Tax which we have paid against the Old Invoice? How can we take the credit of it ? How can we adjust that Service Tax amount in current year? Please advice.

Rupesh Jain

Rupesh Jain (Expert)

22 June 2016 now is not possible , you have to pay service tax again when you raise the invoice.

LALY HAREENDRAN

LALY HAREENDRAN (Querist)

22 June 2016 Customer says as per Service Tax Rules it is possible.
Rule 6(3)
(3)) Where an assessee has issued an invoice, or received any payment, against a service to be provided which is not so provided by him either wholly or partially for any reason or where the amount of invoice is renegotiated due to deficient provision of service, or any terms contained in a contract, the assessee may take the credit of such excess service tax paid by him, if the assessee.-

(a) has refunded the payment or part thereof, so received for the service provided to the person from whom it was received; or

(b) has issued a credit note for the value of the service not so provided to the person to whom such an invoice had been issued

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