Cancellation of invoices

Dear Team,

Facts:

I am a real estate broking firm who provides real estate related services.

Case 1:

In the instant case, we had a MOU with a builder that a certain % of the property value would be paid to us as brokerage. We raised the invoice and added service tax to such invoice value. Now the builder claims that he would not pay the service tax amount and hence the brokerage would be inclusive of service tax.

We have already paid the amount of service tax charged on the invoice to the credit of the government treasury. How do we go about it??? Would it be ideal to issue a credit note to the builder and then adjust the excess amount of service tax paid against the service tax payable for the next month??? How would it be adjusted???

Case 2:

Here we had issued invoices in the month of July 2012 and paid the service tax. Now the Builder wants the date of the invoice to be changed to August 2012. How to go about the same???

 

Looking forward to hear from you guys.

Regards,

Anitha Serrao

Replies (2)

Case 1. Seems to be difficult to make this adjustment through credit note. There are decisions that once bill has been issued showing service tax, same shall be deemed to have been collected. In spite of this there is nothing wrong in attempting the measure suggested by you. Anyway the matter is debatable.

Case 2.Changing bill date is not advisable.

thanks Sir...

But i still fail to understand this as previously there was a concept of payment of service tax on receipt basis... wouldnt it differ since now we have gone to provision basis for payment of service tax???

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