Impact on revenue and service tax cancelled and reissue at diiferent period with diffrent rate

Service Tax (Legacy) 223 views 8 replies
Dear Sir, This is regarding leased out tower sharing to other private operators.invoices were raised in 2013 remains outstanding. Service tax amount have been paid @ 12.36%. Operator now wants to make payment now. due to Cenvat credit issue they now request to raise the bill at current rate ie 15%. please guide us on its effect if we cancell and raise invoice at current rate both on revenue and service tax . with regards jrose
Replies (8)
As per rule 3 of point of taxation rules,2011- the point of taxation will be:
a) date of completion of service or
b) date of issue of invoice (if it is issued within 30 days of completion of service) or
c) date of receipt of payment
whichever is earliest.
Rule 4 also says that in case of change in effective rate of tax, where the service has been provided and invoice has been issued before change in effective rate of tax but payment has been received after such change then point of taxation shall be the date of issue of invoice.
So, as per my view you need not revise the invoice, old rate of tax shall prevail in your case.

Thankyou for your suggestion but my query is the invoice was raised to operator in 2013 s tax @ 12.36 % which have been submitted to service tax authority.The amount have not been realise till date.As cenvat credit cannot be availed for period beyond 330 days, the operator wants us to raise the same invoice amount at current rate ie 15%.

1.can we reissue same amount invoice? If yes, how?

2. what will be the implication on revenue and sevice tax?

Please guide

You mean that the service tax has been collected at the old rate and is also deposited to authority but as the service provider didn't availed the CENVAT credit on the same he is again asking you to raise a new invoice and is ready to pay service tax on the service at the new rate so as to claim the credit. Am i right?

yes..kindly suggest what should be done in such case

Originally posted by : srao cmts
Thankyou for your suggestion but my query is the invoice was raised to operator in 2013 s tax @ 12.36 % which have been submitted to service tax authority.The amount have not been realise till date.As cenvat credit cannot be availed for period beyond 330 days, the operator wants us to raise the same invoice amount at current rate ie 15%.

1.can we reissue same amount invoice? If yes, how?

2. what will be the implication on revenue and sevice tax?

Please guide

You cannot revise the invoice. Secondly if they are asking you to do the same the you have to bear ST amount paid earlier from your pocket.


Regards

Karanjit Singh | +91-7503588224 

thankyou

 

do not revise the invoice

Thankyou for your valuable time and suggestion.Can the service tax amount paid earlier be adjusted or refunded?


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