Invoice Reversal
We have received a invoice from Customer for the services provided during June'17 under Service Tax and against which we have also remitted the payment.
Subsequently due to certain parameters we need to debit certain charges for non-performance.
Illustration :
Invoice raised on 29th June 2017 for Rs. 1,15,000/- (Basic 1,00,000 + 15,000 Service Tax)
Payment made on 15th July 2017
Penalty clause for non-performance is Rs.12,000/-
Can someone suggest me how does the transition provision allow us to raise debit note to reverse Rs.12,000/- for non-performance. Whether with Service tax @ 15% which is no more valid or GST @ 18%
If GST 18% he may get additional tax benefit of 3% on this transaction which may go under anti-profiteering. more
Subsequently due to certain parameters we need to debit certain charges for non-performance.
Illustration :
Invoice raised on 29th June 2017 for Rs. 1,15,000/- (Basic 1,00,000 + 15,000 Service Tax)
Payment made on 15th July 2017
Penalty clause for non-performance is Rs.12,000/-
Can someone suggest me how does the transition provision allow us to raise debit note to reverse Rs.12,000/- for non-performance. Whether with Service tax @ 15% which is no more valid or GST @ 18%
If GST 18% he may get additional tax benefit of 3% on this transaction which may go under anti-profiteering. more
Viewed by 1428
One simple thing you can do is you can raise a debit note dated 30 june with required amount and tax. Or what you can do is you can issue a fresh invoice of the updated amount that you need to recover dated 29 june. Or you can raise a debit note on 30 june and legally you can claim that we have raised for non performance of the service which is yet to be completed. Non performance of service may also pertain to deadline which was not followed by your supplier or service provider. And last is you can raise a GST bill with appropriate tax rate and file the return accordingly. If you have not put these details in JULY return then you raise a debit note of either August for which returns (if) yet to be filed or September month for which you are going to file the return. Kindly correct me if i am wrong. more
Oct 06
