Self Adjustment of ST of Credit Note against Current ST Liability.

[Pratyush Parashar]

Dear Sir,
A Company having centralization registration with service tax department issued a Invoice in FY 2012-13(June'12), for which company received payment also, but due to deficiency in service company has to issue a Credit Note in the FY 2013-14 for Amounting Rs 900,000 + ST.
Shall company self adjust the service tax portion of the issued Credit Note with the current ST Liability? Please Explain.
Regards,

Pratyush.

AI Summary

Service tax credit adjustment permitted where a credit note is issued for deficient service, subject to notification limits
A provider who issued an invoice, paid service tax, and later issued a credit note because the service was not provided or was deficient may take credit of the excess service tax by adjusting it against current liability when a credit note is issued for the value of the service not provided; however, such adjustment is subject to a notification limiting adjustments where excess payment arises from issues of interpretation, taxability, classification, valuation or exemption applicability.