11 January 2011
dear Friends, my company has registration for 4 type of services. out of the 4 one is royalty in whcich we have wrongly paid excess service tax. now can i adjust that payment against my liability under any other head. if yes please provide me circular/notification number.
11 January 2011
The ST liability is not payable service wise but on the whole. Therefore the excess paid in one challan wouldbe adjustable for other. In future payment maybe made for the entity and not for the service to avoid confusion.
11 January 2011
where an assessee has paid to the credit of the government, in respect of taxable service , which is not so provided by him,either wholly of partly for any reason the assessee may adjust the excess service tax paid by him (calculation on a pro-rata basis) agaisnt his service tax liability for the subsquent period, if the assessee has refunded the taxable service & service tax thereon to the person from whom it was received (rule 6(3) of service tax act, 1994.
it is important to note that any amount of service tax paid in excess of the actual liability , is refundable only it is proved that the claimant of refund already refunded such amount to the person from it was received or not collect all (section 11b of the central excise act 1994 which is applicable to service tax matters u/s 83 of the act.
11 January 2011
dear Madhukar Sir, I am paying royalty to Germany and on that i have paid service tax as receipitent of services which is in excess of actual liability so can i adjust it against other services where my role is of service provider. if yes then plese tell me detail procedure of adjustment & relevant circular number for backup.
CAclubindia
