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 adjustment: no self adjustment allowed; refund claim must be filed under statutory provision within one year. There is no provision for self adjustment of service tax paid on subsequently written off bills. The taxpayer must file a refund claim under the applicable refund provision within one year from payment, producing original cancelled bills and other evidence of non receipt; claims after one year are time barred.