07 October 2008
I am running a propriotary firm involved in engineering activities. Thinking that I will cross 10 lac exemption limit, I have charged service tax to client so far. Now itseems that I will not cross the 10 lac limit. My question is
1. Do I have to deposit the service tax component to the govt in future?
2. Can I claim refund of the service tax deposited at the end of financial year if I prove that I have not crossed the 10 lac limit
3. This is my first year of operation. Do I have to pay service tax for entire amount? In forum I have read cotrasting opinion about this. Can enybody give refrence to the service tax rules regarding this matter
08 October 2008
You are required to deposit the collected amount to Government as per sec 73A(2). You can not claim any refund thereon in future. It will be disposed by the government trough Consumer Welfare Fund. Concerned customers can claim their refund within 6 months from the date of public notive issued by Central Excise Officer. No unjust Enrichment rule apply here.
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