Rudrayani Shedjale (Assistant Accountant) (751 Points)
07 February 2014we had recd a product on which we have done some purification & processing work(it is like job work) & returned it to our client.
for this i have prepared debit note.
my question is shall we charge service tax ? & also let me know use of debit note is right?
CA Ashok Agrawal
(Chartered Accountant)
(60 Points)
Replied 08 February 2014
Kindly refer 25/2012 MEGA EXEMPTION NOTIFICATION as amended by Not 3/2013 para 29. If it is an intermidiary process during manufacture which falls in the said para 29 then no service tax would be applicable.
However it is simple repair of a goods then liable to service tax.
Since you are a service provider then you should raise Invoice. Debit note is issued when any kind of accounting adjustment is done after billing related to sold goods or service is rendered.
Rudrayani Shedjale
(Assistant Accountant)
(751 Points)
Replied 08 February 2014
oops...then i should have to passed the journal entry then??
like job work a/c Dr.
Service Tax (if applicable) Dr.
Party A/C Cr.
CAclubindia
