Non receipt of payment of Service Invoice

[deepak kalambate]

Dear Sir,

We have raised Invoice for service provided and service tax is Charged in the Invoice

Accordingly we have paid Service Tax to Govt.

We have not received payment from the service receiver and hence we have decided to write off these invoices.

As Service Tax is already paid by us, can we get setoff of service tax paid.

Above transaction are for the year 2013-2014

Please advice.

Deepak

AI Summary

Nonreceipt of payment and service tax: refund barred by limitation; credit note under Rule 6(3) may provide relief.
No statutory provision allows setoff of service tax paid on invoices for which payment was not received; taxpayers should consult authorities regarding remedial options and limitation consequences. Where allowable, adjustment by issuance of a credit note under Rule 6(3) of the Service Tax Rules, 1994 may correct excess tax paid following renegotiation or deficient service, but its availability is subject to the rule's conditions and any expired refund limitation.