Is this contradictory or an amendment??

Jairam J (CA, B.COM(Hons.)) (382 Points)

08 May 2012  

Refund of service tax -Rule 6 of STR1994

Where an assessee has issued an invoice, or received any payment, against a service to be provided which is
not so provided by him either wholly or partially for any reason or where the amount of invoice is renegotiated
due to deficient provision of service, or any terms contained in a contract, the assessee may take the credit of
such excess service tax paid by him, if the assessee,—
(a)   has refunded the payment or part thereof, so received for the service provided to the person from whom it
was received; or
 (b) has issued a credit note for the value of the service not so provided to the person to whom such an invoice
had been issued.

 

Point of Taxation rules

(1) If subsequently less payment is received by a service provider in respect to bills raised on or after 01.07.2011 due to deficient provision of service or any terms contained in the contract, then the service provider may take the credit of such excess service tax paid by it if it has issued a credit note for the value of the service not so provided to the person to whom such an invoice has been issued.

(2) If no payment is received by a service provider in respect to bills raised on or after 01.07.2011- Service tax must have been deposited by the relevant service provider on the basis of date of issue of Invoice. If subsequently no payment is received by the service provider, then it will become bad debts. No adjustment in respect of excess payment of service tax can be made. The service provider can, however, claim the same
as bad debts
, in his financial books of accounts.