Adjustment of excess payment of service tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

19 October 2013 i have wrongly paid the excess amount of service tax of rs. 15000/- in Q2, Q3 & Q4 of FY 2012-13. how can i make adjustment of excess payment made. please guide

Suresh Ramaswamy

Suresh Ramaswamy (Expert)
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19 October 2013 Service tax paid in excess in any ST-3 period can be adjusted against future liability of the same ST-3 period or subsequent periods. However to be able to adjust the excess paid the ST-3 of the relevant period should reflect the excess payment as advance.

For the financial year 2012-13 ST-3 were to be filed for the periods April to June 2012 (Q1), July to September 2012(Q2) and October 2012 to March 2013(Q3 & Q4 - 2nd half return).

The excess payment of service tax during the second quarter should have been disclosed along with CIN in Part C - Service Tax paid in Advance in the ST-3 for the period July to September 2012.

Similarly the excess payment of service tax during the third and fourth quarters should have been disclosed along with CIN in Part C - Service Tax paid in Advance in the ST-3 for the period October 2012 to March 2013.

The tax so paid in advance can be adjusted in the subsequent period/periods by disclosing the same in Part D - Service tax paid in Cash and through CENVAT credit in the relevant row D3, D4, D5 or D6; i.e. if this advance is adjusted in Q1 or Q2 of 2013-14, the same should be disclosed in the ST-3 Return for the period April to September 2013. The necessary details should also be disclosed in Part H - Details of Challan.

From your query it is not clear whether the necessary disclosures were made in the ST-3 Returns of the earlier year. In case it has been disclosed, please adjust the excess paid in the ST-3 Return as enumerated above. In case no disclosures were made in the earlier ST-3 Returns, the only option is to make an application for refund of excess tax paid.