Service tax adjustment...

Friends, Can we adjust the Service Tax Credit of 2012-2013 in 2013-2014.

Service Tax REceived 10000

Service Tax Paid             7000

Can this 7000 be adjusted in the current year...

Replies (6)

Yes, Service tax input can be carried forward in next financial year to set off with output service tax.

Cheers/

yes, it can be carried forward.

yes you can carry forward input service tax provided payment of bills is made within 3 months

@ Anushree..

 

Can u please elucidate the "3"months...

Thanks

The provision of 3 months are applicable only if you are taking credit on billing basis and not on payment basis. If you are taking credit on the billing and payment has not been made to party within 3 months from the date of invoice then on the expiry of 3 months you will have to reverse the credit utilied earlier. However, on subsequent payment to the party credit can be availed.

 

 

Regards

Nirav Worah

Thanks. Now I am clear.

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