And TRU Explains!
THE JS, TRU-II (Service Tax) has explained the amended provisions. One of the clarifications is, “if the amount of invoice is renegotiated due to deficient provision or in any other way changed in terms of conditions of the contract (e.g. contingent on the happening or non-happening of a future event), the tax will be payable on the revised amount provided the excess amount is either refunded or a suitable credit note is issued to the service receiver. However, concession is not available for bad debts.” Even if my client does not pay me, I am required to pay the Service Tax!
He has requested all the officers to explain and clarify the new provisions to taxpayers! How many officers will understand the new provisions to explain them to the tax payers? And how many officers are going to twist the provisions to fix the taxpayers?
JSTRU F No. 341/34/2010-TRU, Dated : March 31, 2011