Service Tax Credit of Partly Paid Invoice

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  1. dilipkumar

    dilipkumar New Member

    Can credit be claimed for service tax on partly paid invoice?
  2. Raunak Gupta

    Raunak Gupta New Member

    As per the current law, service tax is payable on Invoice basis and not on Payment Basis. So if seller has deposited the full amount of service tax with the department, then you can claim the amount of ST, irrespective of the fact that partial amount is still due on the invoice.

    (Note that if there is no intention to pay the balance amount, then the invoice should be revised and ST shall be adjusted accordingly.)
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