15 April 2010
Dear Sir, Please help on following issue related to service tax. Our company utilized land & building on rent basis. Land owner raised bill to us with service tax @10.3%. We are giving payments to every month with service Tax. But in last month- land owner paid excess service tax (Deposit) to government Rs.30000/-. Now he has giving debit note to us for Rs. 30000/-. Is it right or not. ? If we will pay to Rs. 30000/- to land owner angst his debit note, can we claim for the refund?
I think he can be directly claimed to government for the same.
15 April 2010
Tell the land owner that he can adjust excess paid amount of service tax. There is a provision in service tax rule, 1994 and you can adjust the same with limit of Rs. 1,00,000. But please also keep in mind that after adjustment you need to give intimation to the range superintendant within 15 days.
So the land owner cannot collect service tax paid in excess by him from you by raising a debit note.
CAclubindia
