Refund in service tax

This query is : Resolved

shiv (Querist)
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13 February 2012 One company has paid Rs 5,00,000/- more service tax in January 2012. Can they adjust in Feb 2012 and march 2012 or should the company go for refund under section 11B?

CA Nikhil Jhanwar

CA Nikhil Jhanwar (Expert)
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13 February 2012 As per Rule 4A read with Rule 4B of Service tax Rules, 1994 any amount of service tax paid in excess of what is required to be paid may be adjusted in succeeding month or quarter subject to maximum limit of Rs. 2 lac alongwith intimation of such adjustment to the Department.

Further, in case of centralized registration excess amount paid may be adjusted without monetary limit.

In your case, Service tax to the extent of Rs. 2 Lac may be adjusted in Feb 2012 only and balance You may apply for refund on principle of natural justice and that you have not passed on burden of such excess amount being claimed to any other person.