Provider does not get money back from service receiver

A company rendered service and issued invoice and thereafter deposited service tax to credit of Government.

Now there are indications that service recipient will not pay any amount to the provider due to some reasons.

How can the service tax already deposited claimed by the provider. Is it compulsory to claim refund. Can't it be adjusted against future tax liabilities.

Regards,

Replies (4)

hi

This can be adjusted in the furture ST liablity.

 

Is it through Rule 6(4A) or 6(3) of Service Tax Rules 1994. Can you please clarify, Prasad.

Regards,

Any clarification from any friends, please.

As per Rule 6(3) of service tax rules, adjustment can be made only if the invoice is renegotiated due to deficient provison of service and a credit note for the same has been issued. However, such adjustment are not possible in case of bad debts.

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