refund of service tax

This query is : Resolved

Milan (Querist)
Follow

16 October 2009 we have paid more service tax then actual collected, kindly suggest us we have been received refund or not.

Same thing happend in previos year , we have collected less then we have paid to the government.

If we can get the refund then tell us the procedure.

Awaiting for your reply

Regards,
Milan B.Patel

ANIL JANGID

ANIL JANGID (Expert)
Follow

16 October 2009 refund of service tax (Service Tax)

Though Cenvat credit, which is eligible to claim, cannot be refunded (unless it is an export), the excess service tax paid in cash can be taken back as refund. As per Service Tax Rules, the amount of excess service tax paid in cash can be adjusted against short payment of service tax for the same period of deposit as the whole amount of service tax paid for the period then will be equal to the amount to be paid.

The adjustment is tenable and the assessing officer (AO) cannot question it. If the assessee is not able to make such adjustment and goes on to pay the service tax resulting in excess payment, he would be entitled for refund.