Difference between rule 6(1a) and rule 6(4a) of stax rules

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

17 April 2013 Let me know the difference between the Rule 6(1A) and Rule 6(4A) of Service Tax Rules, 1994 - the details of which are as under -

RULE 6(1A)

"Without prejudice to the provisions contained in sub-rule (1), every person liable to pay service tax, may, on his own volition, pay an amount as service tax in advance, to the credit of the Central Government and adjust the amount so paid against the service tax which he is liable to pay for the subsequent period"

RULE 6(4A)

"Notwithstanding anything contained in sub-rule (4), where an assessee has paid to the credit of Central Government any amount in excess of the amount required to be paid towards service tax liability for a month or quarter, as the case may be, the assessee may adjust such excess amount paid by him against his service tax liability for the succeeding month or quarter, as the case may be."

QUERY:

In case, an assessee who is liable to pay a tax of say Rs. 10000/- has paid Rs. 15000/- through a single challan of Rs. 15000:

a) Can he claim the payment of Rs. 5000/- ( excess amount) under rule 6(1A) and adjust in subsequent period or this amount would fall under rule 6(4A)?

b) Is he liable to adjust the amount in subsequent period under rule 6(1A) but in rule 6(4A), he has to adjust this amount in the succeeding payment itself ?

As both provisions look similar in nature and effect, please clarify us the difference between the two rules

CA Prashant Shrivastava

CA Prashant Shrivastava (Expert)
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17 April 2013 ST Rule 6(1A) applies where any amount of service tax has been paid in advance and to be adjusted subsequently. For this the assessee is required intimate to jurisdictional suptd. as per proviso of 6(1A).
However as per rule 6(4A) application please read the rule 6(4)
It says "Where an assessee is, for any reason, unable to correctly estimate, on the date of deposit, the actual amount payable for any particular month or quarter, as the case may be, he may make a request in writing to the Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise, as the case may be, giving reasons for payment of service tax on provisional basis and the Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise, as the case may be, on receipt of such request, may allow payment of service tax on provisional basis on such value of taxable service as may be specified by him and the provisions of the Central Excise (No.2) Rules, 2001, relating to provisional assessment, except so far as they relate to execution of bond, shall, so far as may be, apply to such assessment"
Now as per query: If it is an advance payment of service tax, rule (1A) will apply & if the payment is on provisional basis (due to not able to find correct ST liability Rule (4A) will apply.