refund of service tax

This query is : Resolved

lalit (Querist)
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25 June 2009 one banker wrongly deposited 8 lacs service tax.
banker wants to refund
what is procedure
how much time taken by the department

SIDDHARTHA SANKAR ROY

SIDDHARTHA SANKAR ROY (Expert)
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25 June 2009 If they are centrally registered they may go for self-adjustment of the entire amount of Rs 8 lakh against their service tax liability in the succeeding month or quarter under Rule 6(4A) of STR 1994, because in case of centrally registered asseesses adjustment can be without any monetary limit.

Otherwise they can submit refund claim with the jurisdictional AC/DC in Form-R giving evidence infavour of their claim. If they have collected the amount from their clients then they should return it before claiming for refund. It is also required to prove that they have not passed on the tax amount to any other person.
The department has to pay interest @6% if the amount is not refunded beyond the period of 3 months.