Service tax liability in case of bad debt
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
27 November 2016
I have provided services for Rs 50 lakh. There was one service of 2.5 lakh in dec 15. which debtors refuses to pay.
Even though he deducted Rs 25k as tds (@10%) and deposited this amount ( this is correctly reflecting in 26AS). He has also taken cenvat credit.
Service tax return: I didnot deposit service tax and did not show this amount of services in mar 16 Service tax return.
Income tax return: for mar 16, i did not showed these in my services and did not claim TDS of 25 k in return. I now plan to show this as income and also bad debt in mar '16 income tax return and claim TDS refund.
Debtors is not paying me, neither reversing the services, since he has already claimed cenvat credit.
Please advice if i need
1) to revised mar'16 service tax return and show this income and pay service tax.
2 ) OR i can show this as bad debt. or
3) keep quiet on service tax return.
Even though he deducted Rs 25k as tds (@10%) and deposited this amount ( this is correctly reflecting in 26AS). He has also taken cenvat credit.
Service tax return: I didnot deposit service tax and did not show this amount of services in mar 16 Service tax return.
Income tax return: for mar 16, i did not showed these in my services and did not claim TDS of 25 k in return. I now plan to show this as income and also bad debt in mar '16 income tax return and claim TDS refund.
Debtors is not paying me, neither reversing the services, since he has already claimed cenvat credit.
Please advice if i need
1) to revised mar'16 service tax return and show this income and pay service tax.
2 ) OR i can show this as bad debt. or
3) keep quiet on service tax return.
CA R SEETHARAMAN
(Expert)
27 November 2016
1 If you are providing service more than 50 lacs pay service tax and revision of service tax return not possible inform service tax dept.
2 Bad debts not allowed under service tax.
3 In case providing service up to 50 lacs keep quit as no liability in view of receipt basis service tax payment.
2 Bad debts not allowed under service tax.
3 In case providing service up to 50 lacs keep quit as no liability in view of receipt basis service tax payment.
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