Service tax
This query is : Resolved
16 February 2012
Dear Expert,
We are into Repairing of computers. We raise bills to customer with service tax 10.3%.As per the new rule the service tax is paid on the basis of bills raised.
We raise at the end of the month for the computers we have repaired and pay the service tax for the same before 5th of the next month. but while receiving the payment the customer pays short payment saying that particular computer is not repaired / still problem continues etc.
My question is can I raise credit note for the short payment we have received as we have paid the full amount of service tax.
Kindly help.
We are into Repairing of computers. We raise bills to customer with service tax 10.3%.As per the new rule the service tax is paid on the basis of bills raised.
We raise at the end of the month for the computers we have repaired and pay the service tax for the same before 5th of the next month. but while receiving the payment the customer pays short payment saying that particular computer is not repaired / still problem continues etc.
My question is can I raise credit note for the short payment we have received as we have paid the full amount of service tax.
Kindly help.
17 February 2012
After introduction of POT Rules, 2011, suitably rule 6 (3) of Service Tax Rules, 1994 has been amended as under:
(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.
Therefore, as per above provision you can take cenvat credit in respect of short payment received after issuing credit note.
If u r satisfied by my reply then say thanks by clicking on "THANK USER".
(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.
Therefore, as per above provision you can take cenvat credit in respect of short payment received after issuing credit note.
If u r satisfied by my reply then say thanks by clicking on "THANK USER".
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