Reversal of service tax paid: Urgent Please

[CA siba prasad mishra]

Dear All,
Kindly help on this issue.

I am engaged in Transmission & distribution, Service .

I am raising a invoice so as per the point of service rule i am liable to pay service tax upfront. But have not received the invoice money for quite a long time.it is there in my debtor list.

As my debtor is not realised can i take credit of the Service tax paid on this or any reverse mechanism available. I have been told by some one that i can reverse within 6  month,but i am not sure..plz help

[pawansingla]

yes you can set off the payments so made against the future payments due for service tax if payment for such recipt does not receive. there is a provision in return to show such set off taken.

[Ramasamy]

Dear Siba Prasad,

In your case, you are not allowed to set off the payment so made against current or future service tax payout merely because you are not received the money from your customer for long period.

You need to written off debt by raising credit note against those original invoice to adjust those service tax against your current liability.