Service tax effect while deductiong retention money

This query is : Resolved

Share Report Follow Query Ask a Query

Querist : Anonymous

Querist : Anonymous (Querist)

22 June 2015 what will be service tax treatment while deducting retention money and cenvat credit rule.

CMA MALHAR BEHERA

CMA MALHAR BEHERA (Expert)
Follow

22 June 2015 In cases where the receiver of service reduces the amount mentioned in the invoice/challan and makes discounted payment, then it should be taken as final payment towards the provision of service.
The mere fact that finally settled amount is less than the amount shown in the invoice does not alter the fact that service charges have been paid and thus the service receiver is entitled to take credit provided he has also paid the amount of service tax, (whether proportionately reduced or the original amount) to the service provider. The invoice would in fact stand amended to that extent. The credit taken would be equivalent to the amount that is paid as service tax.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

xavier

CA. MOHIT SHARMA

Kamaljeet Kaur

SIVALINGAM

ARUN KUMAR

Subscribe Now

Service tax effect while deductiong retention money

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Accountant

Manager- Finance and Compliance

CA Final

Senior Executive

GST CONSULTANT

GST CONSULTANCY