Cancellation of service tax invoice

There is no provision in the service tax law for reversal of ST in case of delayed debts or bad - debts. Since the service i is provided therefore levy under section 66B has attracted and the said transaction is liable for ST. The only saving is that in case there is a deficient in provision of service or if there is any renogiation in price leading to non-receipt of monies in that cases ST can be reversed under rule 6 (3) of Service Tax rules, 1994 by issung a credit note.

Regards,

Ravi Kumar Somani

100% Correct.

 For your safeguard you may raise proforma invoice instead.