ST on write off of bills can be adjusted ?, Service Tax

[VENKATESHAM MUTA]

ST is to be paid on bill generation (mobile bills), irrespective of collection. If the bills are outstanding for a long time and not able to collect the bills. Outstanding bills will be written off,Can we adjust ST paid on those bills against the current ST liability.

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[KASTURI SETHI]

There is no provision for self adjustment in such cases. However, the assessee can apply for refund of Service Tax to the A.C/D.C under Section 11 B (1) Explanation-B(f) of Central Excise Act, 1944( as made applicable to Service Tax law) within one year from the date of payment of Service Tax. The assessee is required to produce original (cancelled ) bills to the A.C./D.C. and other evidence of non-receipt of payment. If one year has crossed from the date of payment, it is time barred and there is no solution.