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Service tax

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vijay

83 Points Posted on 22 December 2012

one of the my client company has provided services to a company in 2010.My client has not recieved the whole amount of bills and willing to write of this bills and consequentally service tax liability which was not paid by it since not recieved by it.

what will be implication in this case ?

can we take any relief from non payment of unrecovered service tax liability under any wayout by service tax act.

please provide reversal entries in solution.

speacial thanks in advance to all.

Replies (2)

CA Pintu Mishra

Chartered Accountant- Industry

276 Points Posted on 22 December 2012

Your company has not recd the whole amount. The amount which you have recd against the service will have to do reverse calculation and pay service tax on that. And you need not pay any service tax on the amount which you havent recd and going to write off as you have not recd the amount.