Excess collection of service tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

29 October 2012 dear all,
If an excess service tax is collected is there any time limit for repaying the amount to the client? if the time limit is exceeded will it attract any interest; if yes at what rate? If payment is made to government will interest be applicable?
Kindly clear my querry
Thanking in anticipation

CA Sahil Singla..

CA Sahil Singla.. (Expert)
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29 October 2012 Sir/Mam

Any service tax collected in excess has to be deposited with Government. Not complying with the same attracts Interest at the rate of 15%. So, pay the same before 5th of next month to avoid interest.

Querist : Anonymous

Querist : Anonymous (Querist)

29 October 2012 So are you saying that we are not suppossed to repay the excess amount to the client

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CA Sahil Singla..

CA Sahil Singla.. (Expert)
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29 October 2012 Law is silent on the above issue.