Re-credit of service tax where ST has been paid on receipt of advance or on accrual basis and where such amount is refunded or services are not provided - Service Tax Practice Manual / Ready Reckoner - Service Tax

Credit of excess service tax where ST has been paid on receipt of advance or on accrual basis and where such amount is refunded or services are not provided Rule 6(3) of Service Tax Rules, 1994 - Where an assessee has issued an invoice, or received any payment, against a service to be provided which is not so provided by him either wholly or partially for any reason, or - Where the amount of invoice is renegotiated due to deficient provision of service, or any terms contained in a contract assessee is allowed to take credit of such excess service tax paid on such amount himself and he can adjust the same with subsequent liability. Conditions a. If the assesse has refunded the payment or part thereof, so received for the service provided to the person from whom it was received; or b. If the assesse has issued a credit note for the value of the service not so provided to the person to whom such an invoice had been issued The provisions of Rule 6(3) became more significant after introduction of Point of Taxation Rules, 2011 =================