Debit note received from debtors

[SUMIT GARG]

In the case of a company  , monthly tax is being paid on mercantile basis since April.

In the case of  one debtor of the company , debit notes  have  been  issued by the debtor

now for every month  for some amount since April affecting the Service Tax also.
Can we seek adjustment of the amount of service tax every month by entering the debit note at the end of the month and carry it forward every month.
Shall we enter all the debit notes on 30.09.2011 and  carry it forward.
How these should be reflected in the Service Tax Return??   What is the correct procedure to be followed in this regard.

[DR.MARIAPPAN GOVINDARAJAN]

Whether you have got clarified in this issue? If not please inform.

AI Summary

Service tax adjustment: whether retroactive debtor debit notes can be recorded monthly or aggregated for return reporting. Whether service tax liability and returns must be adjusted when a debtor issues retrospective debit notes is in question. The taxpayer uses the mercantile basis for monthly service tax payments and seeks guidance on recording each debit note at month end and carrying forward adjustments, or alternatively aggregating and entering all debit notes on a later date, and on how these adjustments should be reflected in the Service Tax Return.