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.
Company Seeks Guidance on Adjusting Service Tax with Monthly Debit Notes; Clarification Requested on Service Tax Return Procedure A company is paying monthly service tax on a mercantile basis since April. A debtor has issued debit notes monthly since April, affecting the service tax calculations. The company seeks guidance on whether they can adjust the service tax amount monthly by entering the debit notes at the end of each month and carrying them forward, or if they should enter all debit notes on September 30, 2011, and carry them forward. They also inquire about the correct procedure for reflecting these in the Service Tax Return. A respondent asks if the issue has been clarified. (AI Summary)
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