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.

[KASTURI SETHI]

There is no provision for self adjustment in such cases. However, the assessee can apply for refund of Service Tax to the A.C/D.C under Section 11 B (1) Explanation-B(f) of Central Excise Act, 1944( as made applicable to Service Tax law) within one year from the date of payment of Service Tax. The assessee is required to produce original (cancelled ) bills to the A.C./D.C. and other evidence of non-receipt of payment. If one year has crossed from the date of payment, it is time barred and there is no solution.

AI Summary

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.