Based on the notification dated Notification No. 13/2011 dated 31st March, 2011, if an invoice involving service tax remains unpaid for over 3 months then the service tax credit taken at the time of invoice should be reversed.
Our queries
As the law is silent on the amount that should be reversed in these cases. We seek inputs on what should be the reversal amount in the below scenarios
|
Scenario 1 |
|
|
Purchase Order |
24923 |
|
Plant (Invoice amount) |
|
|
A |
12461.5 |
|
B |
12461.5 |
|
Service tax (10%) |
2492.3 |
|
Payment made |
16000 |
|
|
|
|
Question 1 |
What is the service tax credit availed amount? |
|
Question 2 |
What is the service tax amount to be reversed? |
|
|
|
|
Scenario 2 |
|
|
Purchase Order |
24923 |
|
Invoice |
24923 |
|
Service Tax (10%) |
2492.3 |
|
Payment Made |
16000 |
|
|
|
|
Question 1 |
What is the service tax credit availed amount? |
|
Question 2 |
What is the service tax amount to be reversed? |
Please advice.
Regards,
CAclubindia
