Rakesh Mittal (Manager) (26 Points)
04 February 2017Dear Colleagues,
I have query related to service tax . A service provider has raised an invoice for providing services and also giving an assurance for maintaining the quality of material. He raised an invoice for services say Rs. 2 cr + service tax. Now service recipient has raised a claim of Rs 10 lac for quality deterioration. Now please suggest us whether service tax is applicable on Rs. 10 lac credit note on not ? If yes is there any case law ?
Regards
Rakesh Mittal
09643356753
Nikhil Sharma
(Government Service)
(539 Points)
Replied 04 February 2017
No service tax will be applicable on it but service receiver will have to reverse the cenvat credit taken by him on those 10 lacs.
Rakesh Mittal
(Manager)
(26 Points)
Replied 04 February 2017
It means no one will be able to get service tax benefit on penalty amount
neither service provider by reversal of service tax via credit note.
nor service recepient by cenvat credit on original invoice
Rgds
CAclubindia
