Exces st adjustment(urgent)

transfer the may bills to april in return only, 

So u mean to show all the documentary evidence of st adjustment in return?

can u please further elaborate

thanks

Service tax is payable on cash basis.

In the example there is no excess payment. Question of excess payment and its adjustment does not arise.

Ya I agree that it is payable on cash basis.

But this transaction is with associated enterprise and hence according to me st is payable  on all debit and credit to partys account i.e. amount billed or received whichever is higher.

So this client of mine keeps on receiving excess funds then amount billed so as to carry out its operation in India. It can be said as advance received. Hence st is paid on amount received, which is obviously excess st paid by him then received which he adjusts in next month so that he actually pays the st on the amount billed.

For this I am refering rule 6(3) (adjustment of excess st paid)  and also 4 conditions to be satisfied for making suo moto adjustment of excess st paid.

as the payment is received in april and service tax paid on payment, so the invoice raised in may, just show that invoice value in april itself, 

ST-3 does not ask u more details, but if the values differ they will ask loads of documents over the return, 

better way to adjust the april tax in april itself , but showing the may figure of the service in april itself, clarification that advance payment but invoice raised later. 

In this case you are create liability of Service Tax......

That means you are required to pay Service Tax @ 21,00,000/-*** & recovered amt subsequent Bills...........