TaxTMI 
TaxTMI 
ST on write off of bills can be adjusted ?
CMA VENKATESHAM MUTA
ST is to be paid on bill generation (mobile bills), irrespective of collection. If the bills are outstanding for a long time and not able to collect the bills. Outstanding bills will be written off,Can we adjust ST paid on those bills against the current ST liability.
Service Tax on Uncollected Mobile Bills: No Self-Adjustment, Refund Possible Under Section 11 B (1) Within One Year A query was raised about whether Service Tax paid on uncollected mobile bills, which are eventually written off, can be adjusted against current Service Tax liability. The response clarified that self-adjustment is not permitted. However, the taxpayer can apply for a refund under Section 11 B (1) Explanation-B(f) of the Central Excise Act, 1944, applicable to Service Tax law, within one year from the payment date. The taxpayer must provide original cancelled bills and evidence of non-payment. If the one-year period has lapsed, the claim is time-barred with no available solution. (AI Summary)