debit note, Service Tax

[Amar Patil]

sir,

we received short payment againt service invice. these bill of october month . we already paid service tax of these bill but Service receiver party Book short amount and raised the payment to Service provider. now Service provider asking for balance payment but service receiver party demand debit note. b,coz they did not claim full service tax in booking invoice. so how can i raise debit note to service receiver ?

Posts / Replies

[Surender Gupta]

When services have been provided and Invoice was issued for full value, mere part payment of total value can not make that invoice invalid. Though the provisions of cenvat credit are not clear in this aspect but service receiver can avail balance cenvat credit after making payment of the balance amount of the bill. Alternatively, a debit note or fresh invoice may be a solution but not full proof since may lead to booking of the same revenue in two years.

Although, in my considered view, this issue may be solved through accounting treatment by a learned chartered accountant.