Value of Taxable Services

[Chetan Pawar]

Dear All,

We are the manufacturer as well as service providers, We are providing Consulting Engineering services to our customers on monthly basis and then we are raising the Service invoices on monthly basis & based on that we pay the service tax monthly basis through Cenvat credit and it has been shown in return also. but our customer has deducted some amount against our Service invoice, give a short payment to us.

In such case can any one tell me, what is the service tax amount to be paid, if service tax amount on payment received then how to recover the excess service tax paid through cenvat credit

AI Summary

Guidance on Handling Service Tax Credit for Short Payments on Invoices Under Cenvat Credit System A manufacturer and service provider inquired about handling service tax when a customer makes a short payment on a service invoice. They pay service tax monthly through Cenvat credit and need guidance on recovering excess tax paid. The response advised that if service tax has been deposited based on the full invoice amount but a short payment is received, the company can avail of service tax credit in their books. This credit can be adjusted against future service tax dues. It is recommended to notify the jurisdictional Range Office and reflect the credit in service tax returns.