TMI BlogWritten Back of Liabilities as on more the 3 years ( Material and Services)X X X X Extracts X X X X X X X X Extracts X X X X ..... Dear expert please advice for consequences in Service tax, Excise and GST , if we are written back the Credit balance of Creditors ageing more then 3 years. - Reply By KASTURI SETHI - The Reply = Dear Querist, Written back means already written off and now you want to write back. Pl elaborate on what account earlier these were written off. More details are required for correct reply. Prima faci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e, writing back will impact all the taxes mentioned by you but how and to what extent, reply is possible only after more details are posted. - Reply By Prem Choudhary - The Reply = Sir Terms of Written Back means the liabilities(Creditors or provisions) which are credit balance(payable) however this is no longer require to pay , the balance may be for supply of material or Services rend ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ered in past( here more then 3 years). For written back entry :- These balance of respective of liabilities are debited and Credited to Profit and loss account . - Reply By Ganeshan Kalyani - The Reply = In my view the input tax credit already taken on the purchase from the vendor (creditor) whose liability has been written off need to be reversed. - Reply By Ganeshan Kalyani - The Reply ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... = As per section 16 (2)(d) of CGST Act , states that if a recipient fails to pay to the supplier of goods or services or both, other than the supplies on which tax is payable on reverse charge basis, the amount towards the value of supply along with tax payable thereon within a period of one hundred and eighty days from the date of issue of invoice by the supplier, an amount equal to the input ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tax credit availed by the recipient shall be added to his output tax liability, along with interest thereon, in such manner as may be prescribed: Provided also that the recipient shall be entitled to avail of the credit of input tax on payment made by him of the amount towards the value of supply of goods or services or both along with tax payable thereon. Hence, if the amount payable to th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e creditor that is the supplier is written in that is not paid then credit should be reversed . - Reply By Prem Choudhary - The Reply = Amount is related to earlier taxation i.e Excise and Service tax period. - Reply By KASTURI SETHI - The Reply = I agree with Sh.Ganeshan Kalyani Ji .His reply is also applicable for pre-GST. - Reply By Ganeshan Kalyani - The Reply = Thanks Sri Kasturi Sir. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - Reply By KASTURI SETHI - The Reply = Sh.Ganeshan Kalyani Ji, On the basis of your replies posted in accounting matters for the last three years, it is my observation that you are specialist in commerce or accounting matters in relation to Service Tax and GST. This is a fact no exaggeration. - Reply By Ganeshan Kalyani - The Reply = Thank you so much Sri Kasturi Sir for your appreciation. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - Written Back of Liabilities as on more the 3 years ( Material and Services) - Query Started By: - Prem Choudhary Dated:- 1-3-2019 Service Tax - Got 9 Replies - Service Tax - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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