SERVICE TAX PAID / INVOICE RETURN, Service Tax

[gangadharan m.v]

Dear Sir / Madam

The party paid service tax on accrual basis. But the same has not been received from the customer due to cancellation of bill. Can we claim it as refund.

Posts / Replies

[KASTURI SETHI]

Sh.Gangadharan M.V. Ji,

Yes you can claim refund. As per Section 65 B (44) “service” means any activity carried out by a person for another for consideration, and includes a declared service, but shall not include-

If no consideration is received, no service provided. You can claim refund with documentary evidence i.e. Cancelled invoice and proof of non-receipt of payment from service receiver.

[Ganeshan Kalyani]

Adjustment against ST payable should also be looked into.

[KASTURI SETHI]

Yes, Sir. Such type of excess payment can be adjusted in the following quarter/month in terms of Rule 6(4A) of Service Tax Rules, 1994.