TaxTMI 
TaxTMI 
Dear Sir / Madam
The party paid service tax on accrual basis. But the same has not been received from the customer due to cancellation of bill. Can we claim it as refund.
SERVICE TAX PAID / INVOICE RETURN
09 Jun 2016 
3 Replies 
1212 Views Asked by
Service tax refund where no consideration received; claim with cancelled invoice or adjust against future tax liability.
If consideration for a billed service is not received and the invoice is cancelled, the payer may claim a refund of service tax by submitting the cancelled invoice and proof of non receipt of payment. Alternatively, the excess service tax payment can be adjusted against future service tax liability in the subsequent return period under the statutory adjustment mechanism; taxpayers should consider adjustment against outstanding service tax payable before pursuing a refund. (AI Summary)
If consideration for a billed service is not received and the invoice is cancelled, the payer may claim a refund of service tax by submitting the cancelled invoice and proof of non receipt of payment. Alternatively, the excess service tax payment can be adjusted against future service tax liability in the subsequent return period under the statutory adjustment mechanism; taxpayers should consider adjustment against outstanding service tax payable before pursuing a refund. (AI Summary)