Service tax advance

Dear Sir,

I am having the following queries, please guide me on the same.

 

Please find below the  Facts of the Query :

I am a service provider and registered with Service Tax Department. I had billed to my associate enterprises during the F.Y. 2010-11 So as per service tax I am liable to pay service tax on accrual basis and not on receipt basis. Accordingly I had paid the service tax to the department during the F.Y. 2010-11. But in August-2011 the Management of the Associated Enterprises find that the billing already raised is incorrect. So they raised a debit note against the same. I had already filed the return for the half year ending on 31.03.2011 and also I can not revise the return, as the 90 days has been lapsed.

And now please find below the Query :

So now what is the remedy available to me regarding the Service tax already paid on the billing to associated enterprises for which i got the debit note from the associated enterprises. Should I opt for the Refund of service tax from the department or Should I treat the same as Advance service tax and adjust my current service tax liability against the same?

Please address the query on urgent basis.

Thanks

Replies (1)

Dear Rakesh

In my opinion this should be treated in your return for period April - Sept 2011. my logic being at the point of time you were not even aware that the reversal (dr. Note ) will be issued. in the notification which came out for Point of taxation, there is a specific mention of Dr note being claimed for reversal of services rendered.

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