Service tax on unpaid invoices

It is the mistake of your client who has not made any provision against services received. Since provision is made not on the basis of invoices but on the basis of work/job done. You have already deposited service tax in P.Y. and St-3 must have been filed by you for the quarter ended Mar-2011. So at this stage you can’t show advance deposit.

Obviously, the expenses have to be booked in current F.Y. by your client and document date is not important but posting date is important for booking expenses.

Hence , to avoid  any audit objection that why they have not made any provision in P.Y. against such services received, they are simply asking you to raise invoice in current date.

To resolve the issue , you can reverse the documents and issue a fresh invoice or simply rewrite the current date by way of oblique in their copy.

Thanks

raise the credit note and raise new invoice