Should GST be paid for invoice not honoured
I will be grateful, if anyone can clarify my forllowing doubts
1. If a company raises an invoice in the month of March,2017 on a client and the payment received in the month of July,2017, should the company pay the service tax after receipt of the amount ?
2. If a company raises an invoice in the month of March,2017 on a client and the payment received in the month of July,2017, should the company pay the service tax after raising the invoice even before receipt of the amount ?
3. If the payment is received after two months of raising the invoice and if the service tax is paid after receiving the amount, should the company pay interest for a period of two months from the date of raising the invoice and date of receipt of the payment ?
4. If an invoice is raised by a company and invoice is not honoured by the client and payment not received by the company, should the company still pay service tax against the invoice amount raised ?
5. If the invoice is not honoured and service tax is paid on the invoice amount, will the service tax paid for the invoice amount be refunded ?
N.S.Venkataraman
Chennai
nsvenkatchennai@gmail.com more
1. If a company raises an invoice in the month of March,2017 on a client and the payment received in the month of July,2017, should the company pay the service tax after receipt of the amount ?
2. If a company raises an invoice in the month of March,2017 on a client and the payment received in the month of July,2017, should the company pay the service tax after raising the invoice even before receipt of the amount ?
3. If the payment is received after two months of raising the invoice and if the service tax is paid after receiving the amount, should the company pay interest for a period of two months from the date of raising the invoice and date of receipt of the payment ?
4. If an invoice is raised by a company and invoice is not honoured by the client and payment not received by the company, should the company still pay service tax against the invoice amount raised ?
5. If the invoice is not honoured and service tax is paid on the invoice amount, will the service tax paid for the invoice amount be refunded ?
N.S.Venkataraman
Chennai
nsvenkatchennai@gmail.com more
Viewed by 844
View all 10 comments Below 10 comments
[ ]( # ) [ ]( # )  [ ]( http://r.sigma-institute.website/mk/cl/f/7ABdDhgvAAfX0QWaSbdI2jKSTYOK593Vu4hCwt3hBBm5XOkAo2m49Z5te4A416uGY3CUD9HTH1C5Hg84wG19PPh84kmsnDNRlPOKf84ThM0sulCEOl3_BjfWM5ABLErCzVUMRYzELE0n89wMPd6OdTmtwCJeVdq2RTziP7ESMS9i1moKz1K2gczkySB7IXK1If2pzu2F0Ni6BwimHziRf66jSkGoroRy2quRMCpkBXkuM__U3q3om3_Lw2WCyzXujXkGfc0awbgOFrUX1R7jcFnUOhh9QfPAZSeqhLauxObCN6bF0CVGusTsBp00Rnd7wy6Qh_p_H7Oc-12Fntz0sm0TKfk5aghtk-vz-WqpyUXeWo-dCA )  [ ]( # ) COMPUTER FOR ONLINE CLASSES [ ]( # ) [ ]( http://r.sigma-institute.website/mk/cl/f/-bcoio1esQ-mR2glPligpirqrrORbbLPMCfu1hqT2yVUB3bE9ktwyzyGCzPuPJpGW80sJgnYXl-EohadLoN-jJE8qp3jTrNsvAUNZkZYAEaCetCqh48BD5wIgdj6UKl4YaoJc51c3t8SAkHLtdJ7_7CuENypYW0Ga_KXSUclKwQal6_bnLPweBUpFeDqqSV9OponEFjHIhCv_Oo4BELXHGedeKStqjeYY7wi6AwfTrFSkEJ83Ei3rRyoeVDC3LCTleth2GKK0MeBxxXMLbIK4IiSbqvyFiO-VdhWUZsE183oqyWwZTUgUvLiY5BsXDnoRTvWDsJPJ_c9TYQT-lrXgMdbnfWzDRuLQ_8mjBcJ0gwox7iAgQ ) [ ]( # )  For online classes we are providing a complete set of computer with UPS in following specifications: Monitor 15"; Camera & headphone CPU: 160 GB HDD, 2 GB RAM, Core 2 duo Keyboard, mouse UPS ( Electronic voltage stabilizer ) This complete set we offer pan India for Rs. 21000/- ( All inclusive ) One extra 160 GB Hard disk will be supplied free of cost within 5 years, if present becomes in sufficient. All carry "M.I.'s" 1 year warranty.    [ ]( # ) [ ]( http://r.sigma-institute.website/mk/cl/f/cynyh7oG-iJKi7FNNRJ3o4RW777Mm0X9qaecyYq92YNAh94aGbLH8p4dx7n8T5hTJGEAhH0unacJNNlQxVfGUurCqVz0qD8s2f4aOfBJ3mDeSRL3kx-3uQGdqLx1CMM4sSvuU05-YudQYXfw3m5HK145ZBHbI3sEzxpIZGQgLJO1k1X4h6GjbHBRnd_Hy3yUCBsS7ivHWsuTIpGmtMNcfVYgcEz06nUXxQQapaM1XXXkfFV9eEqHJJpgsZMOedqXGWbeWig9o_HBPOftVxqsA8UTjhptb7yjdtHn6LBEmeNv9vW4QGuqGIXHkAU4gwfY_ryr7zIaLR3EEu9q2gn4k_euWHnvq4N0koUe9keOsayrRkp3wg ) We understand the hardships...  Hardships of the parents, hardships of teachers, hardships of every such individual who is now compelled to work from home; be it student or the the professional now computer set is must. we decided to help all such people by providing the complete set including UPS to save your machine for longer life. In comparison to laptops desktop is robust & long lasting and also cheap & best ! For getting this deal, please click the button below:  [ Button ]( http://r.sigma-institute.website/mk/cl/f/kjeIBZzoBwMqz8jSZ5mm5z0gKDD_s9ZTX_VrmLxB1D4AJLHOuWkqkQzbvUcTXBG2MVO6XS16acRD1-DtixIwJJzb6kXgmVXjfwBfSrenN3uGxLpskjkqeEllH3Y80Ed4ArxR8Zvhp50XbgjGlV9i5Awaqy_52G_EFyZVdZcMs3gU-LwefBZNqThbPWeJNtDsukEKic7eFEd_F3TVzrtVcZkXzmUbAEO79owYQE2Tch_OvT2faa2urq4x8U9cNwCj8ZcCIDnUxX0Uvcml1vDz-oWxyDySOIMpZr_76JUPo5V7ZK7Aby-UNMOnuVdE6Wh2XyKWprhgrpbQ41UIqaRqkiyfTdhneliN0YWmvWiUiFrQDjS7jg ) [ ]( # ) [ ]( # )  SIGMA INSTITUTE Delhi Cell: 9899075161 [ ]( http://r.sigma-institute.website/mk/cl/f/BamWuJ_ZTbYAWypOCICZNVeI3gOjrXPu7ukOSyo2M7GBCCxCH4shYVVv300ofRKuaaI5lzPqIi6PjLLd6DEX31ukIU2tZYBfKjLUMv0mKIz8B0ShPJ6-Y3UVWrsuhabpmDfDK-Y8XN7MD14j3eqglX0XbmhyEndMaP-Rbf2BRgdtPlFCOEXOKr709YAydKAeQDia9Q3qMXSKnD8y6oAC-mudKAjIz5r9oasz9rphTGh_wcVo1afqcwNChOHNMW9yQTJoEhLRrYgvxH72JbMPKS1OjKEdFKLBczZUyaOlkzdpYZ8BaC4SRCEQ4WTWU14O_pZmu8nrYugG89JirqbZpcDBstWKwA ) [ ]( http://r.sigma-institute.website/mk/cl/f/_FbWT77XvBIcNtz8rJEBmi5ahg6K87Eixt0TIzKzD4BnF4fXQvEGBnqmehg1S2v4GOoAXz-30mQ896d1bEhDcFtYROTQECKnAQk7P6w1vXAGL_nXpQCSzWwiRBLjGx9JCbwn-0oayfio4B2FscmWN7rDnMtQN0F40Jyb9GKrLivDP8Q8BqxiYodmXKkKBMnaBtECGCB_mQc_1xAhhvUkmFboCkIQLobLP2I2XgV85mWzVSYPD1xi_Ry1YzWua5gsxP--T8uL7KPQmXyXp5DgB9zvKGvzjIi-KQCmK5zCl4qo9Zi7qvctOhEA0hmamSpjVXDl6Qr4TsSeVlB6Cc-3hk9f1g ) [ ]( http://r.sigma-institute.website/mk/cl/f/J4Rl02URfTIRL32MFYssdvO0NE9UMz6kT1tmwVVkkrHo1o-NLWK0d9SEBF23B1ckLEB-3906CadXI1kkdqz4XcTtcF3M62nmyUp5QO76OrP_J-eQ4KgOyvI81cuHRt1vWNOzRyoxG1YZxy7YAmPjQey8XhHh_dfgxnHyOW9QWnKWv4qMoJWKlrIryrdtSee4woGNt08ToY9fBYLsQEmP4zr9xkUjYBuVg_vxtDPWDCoAvbiXXkwXDbeMWl6o4WUy5-NqLRVWT7CiLNXGfaiSQxM8pcYQZztvBWGF-GS1p2Uh9NqXT3_61XcLIZerr5Ospg65NgB2bgwu6l51lRXpvlI ) [ ]( http://r.sigma-institute.website/mk/cl/f/NE3hF4XeNOnuI4nCopKJAAOG2tDxQWkxTIK-B7guuVQy0dY1wP4K0XOuYPXW1DUa7tFinbZScyj0vf2sMldlWjIhByMkNsHLDI0CNlyMQih9RUJ7qmeDPgoPIEgwHaXSnTXAonRGhncDVNu0dDc9LumCqXeyzkDAISh8s0RjaLJjAvpcA7t1RagAQS4vF2LpiN_r8dZc1BadzrMY4cDKf_QEqEYIlWyQwe9xBMZM_jpfW-Q5-fNdfZatMX0LBnviiGk91T0LXGbjeifQeojZ408Zv9PNhOv0FCnjQ8lCklREsbyX8B5ad0liTTYtKH1d5mKe_J_naqTG7xYlAQjB7SrifdjsTyt3_qUUop4 ) [ ]( http://r.sigma-institute.website/mk/cl/f/Gt3WETuaXUlvSkzI7lYdvAeMaaTfmOm9amAx-ITnsc1zW_ZET8HHNvDXAK0eHGFk8UTiF4lB9GCIiB0gHVX5L95C8pD5Zz6_FaYQSXcB49Q0tMDb-BvrkhFbZ6fYw2T-eCsv76mYKoyLOVpOu9M-h7h-EbXIuWUebTgttxwNbE64pKufal0nGpLtkvKCRfnM1dLBs8KINQVfr2hKxtLPtNMCZCwULo74sM_nvPsevvWHNzPXCgFsjwIHJUXo9LFkutKYmJLpDX7gQL1wql6u4yKj98O2eC1DImzo7B7xOD0OitlA984z_iy45aVzX3gBh0ifUjsSVBQg8nKDr0EZ6Anbk38Onw ) [ ]( http://r.sigma-institute.website/mk/cl/f/Hl7UOUWuO2W0qdnfLeRzR6-emqyB1PXKxFhhAfcctUq_OOFJo08PDt_0lG-tOnlCvGIwK6YT1FFz8-O7FjK29iej2_9TjylDbhg3JZ3Q5ECL5lG2smRpme0KdeyQwqKmqMZkc6SKgK7GvT2CWagp8G576GEEeQuTrNkpX7kegxOgaYx6jtnEhxOy351sf4gR-NAfjlki6jyM1K1OWYGPPv2Zd_pPXvxcTtKmrApUGiyL_4Dozr_Aa9TyDiY8XlEyo7bitjLVgzJ07-x1BMSfoHYG81HYyiLzTS7Wqsl2W6KV7QziYMTT-ItCuZwcrzUEjLNNClS40SI0B8DyiSa-_7G8l5i7xYQeP77S6ApwzMfp0mnOtaSWC1lLBkZCwziLAxbEQpDZ9DEX287EAzE ) [ ]( http://r.sigma-institute.website/mk/cl/f/BdNUv7SbHWSatrvDa6Fm2jG4jSOdOzylEeYAPrzg1sFRl2pfzR2fqzcVMfA3e5xR78ViYfaAOs6aGm2UPiCY9fGS5EA1L6mSKvYTcTGQZZ9RO3FDHESPj0_0Invc1jgtgu4f-3Ks_vngYXV8xhY9l8QHtUKXQJfnVvOg-0D4HT1BEAGUtOwxKhY9AVRbtiMIfo22IlJmheNYwcTceDRoJvYVOI0RCFFFGNwkyFQdyFxIDCQFQYkH7i0eWaLfsYnxvJOqHKomQFIofXCyFkFNfubEr0Fj_hWzj-zj2_wV6FyMv8Edz0htuXXt6bhTcD13yXxZrcmwmotmyoxXPG1cSQm8jd6vMEnBFIkkfNZx ) [ ]( http://r.sigma-institute.website/mk/cl/f/TOPtjzc22L2DPsBKROYG37pgE_Humw3MP16YtZIQqIl3bJHN9zsnMIqGjaLzH4l1G_HRnj4UoslFPhUDojt5VU2dzWfEshwaIlHVBD6V-iS-BT0Vv54HQW-N_tf5chrIocexM3ObaxtHL1LsQbWbnSgVkc8-r2BIO1Cn4PNwOhD0YZBSWHNBFwtjzWvmDtsmFIQVDcAxJeSW15heWNWIcNwN4t-WpEmR1HHneLiA3rmv31opEhudgRIquL9LYagCeBjhC4FPWYj8NhcUcbnYQSnGlxV61sokAzVStEj11-uC6WYGZM30gFMHSIz0eLZ6OE1IfcoLTVZNYJtZPgZMUP4m0LomFZ6p4nhe )  [ ]( # )  You received this email because you are registered with Sigma Institute  [ Unsubscribe here ]( http://r.sigma-institute.website/mk/un/TEq3cd_m4Y23okZ_A9wqSJifUA8d2WS6Kz6T1lVkNwJAxzXaEyZIRXRvmCkPOFrqZtLSxS-oZSQPFetLtk8sTlpSwL8uoMaNZsG88YdmBHYciEgyuwbWEiVgbEUNuu4iLVutDLWBxffD-vbZJhjSUug9yAjCw2QvfUJlJqGrlmXMaYQCHuxs3LNlJwh8CAYU_TcHBm-p1F_jIeaw-mJSRTZAWVk )  [ ]( # )  © 2020 Sigma Institute  more
Oct 31
There are three events which are important for us to understand when is the levy complete. The three events are as under: • a. Completion of service • b. Date of invoice • c. Date of receipt of payment The above three events will determine when is the levy complete for taxation under Service Tax Law. 1. Services are provided before June 30, 2017, Invoice raised before June 30, 2017 and payment also received before June 30, 2017. Since all the three events are concluded before June 30, 2017, the relevant service would be taxable under Service Tax. 2. Services are provided before June 30, 2017, Invoice raised before June 30, 2017 but payment received after June 30, 2017. Since service is completed before June 30, 2017 and the invoice for same has also been raised before June 2017, payment has no role here for decided taxability under Service tax. This transaction is certainly taxable under service tax. 3. Services are provided before June 30, 2017 but Invoice raised and payment received after June 30, 2017 Two scenarios are possible: a. Invoice is raised within 30 days from the date of completion of service even though it is after June 30, 2017 As per POTR in case the invoice is raised within 30 days then the point of taxation is date of invoice. Since the invoice is issued in the month of July when the Act is not in force, then strictly by going through the legal provisions service tax is not applicable on the said transaction. However, one may take a view that since the service was completed in the month of June 2017 but only the invoice was issued subsequently, service tax on the said transaction may be discharged to ignore any litigation that may crop up in future. b. Invoice is not raised within 30 days from the date of completion of service after June 30, 2017 If the invoice is not issued within 30 days from the date of completion of the service, then the point of taxation is the date of completion of service. Since the service is completed in the month of June 2017, service tax is applicable on the said transaction. As per Rule 4A of Service Tax Rules, 1994 an invoice needs to be issued not later than 30 days from the date of completion of service. The time limit of 30 days must be construed only as an upper limit and not the actual date on which an invoice needs to be issued. Therefore, one needs to be cautious especially in case of fixed term services (renting, leasing, AMC, retainer etc.,) to not wait for the completion of 30 days / going beyond 30 days for issuing an invoice.The ideal approach would be to raise invoice as on the date of completion of service than waiting for completion of time limit of 30 days or going beyond 30 days. 4. Services are provided, Invoice raised and payment also received after June 30, 2017. Since all the 3 events are after June 30, 2017, service tax is not applicable on the said transaction. Hope the above will give you the required clarity. more
Aug 16
Yes. Please refer to the replies Shyamsundar Joshi and Subhash Gupta for refund if the invoice is not honoured /goods returned more
Aug 16
dont compare payment with billing both are two diff in nature, whether party pay the Invoice or return the goods/service not provided/refused, then you can take refund based on nature of transaction but payment of service tax need to be paid as per due date of the act/rule and refund can be made upon return/cancellation of the bill/service within stipulated time. more
Aug 16
If service tax is paid and invoice is not honored ( assuming due to either deficiency in services or service is not provided at all) refund is possible. Rule 6(3) of STR ,1994. 1. Login to your Service Tax Account (www.aces.gov.in) 2. Click - Ref > Refund Request > Create 3. Fill in the form / required details 4. Submit 5. Refund allowed only if filed within 1 year from the date of payment of ST more
Aug 16
AS PER SERVICE TAX RULES TAX IS LIABLE ON RAISED INVOICE IN THE MONTH OF MARCH 2017 EVEN THOUGH NOT RECEIVED PAYMENT. more
Aug 16
