A Company has received service tax invoices dated June 17 and the same have been accounted in books of account in July 17 and the credit of the service tax has been availed through TRAN-1 7(1)(b) column. these service tax credit has not been routed thru TRAN-1 i
Now department is disputing the above credit
Company has paid RCM liability of service tax in July 17 of services received in April 17 and June 17 and the credit of RCM has been taken through column 7(1)(b) of TRAN-1 and same is not reflected in the service tax return
kindly advise whether this is correct
Company's TRAN-1 Credit Claim Disputed for Service Tax Invoices, Department Validates Objection Due to ST-3 Return Discrepancy A company received service tax invoices dated June 2017, accounted for them in July 2017, and claimed the credit through TRAN-1, which the department disputes. The company also paid Reverse Charge Mechanism (RCM) liability for services received in April and June 2017, claiming credit through TRAN-1, which was not reflected in the service tax return. The response indicates that the department's objection is valid because the service tax amount was not part of the closing balance of the ST-3 return filed on June 30, 2017. The company should have applied for a refund instead of claiming credit through TRAN-1. (AI Summary)
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