23 November 2011
Department of post is paying the Service tax due from there in by way of book adjustment from department of Posts, delhi to finance department. However when we have to file the return we have to mention the Challan number along with BSR code.
This is a technical problem and please suggest the corrective measures.
23 November 2011
As per my knowledge rule 6 of Service Tax Rules, 1994 deals with payment of service tax and rule 3 (4) of CENVAT Credit Rules, 2004 provides for payment of service tax by utilizing CENVAT credit. And there is no separate manner of payment available for Govt. department.
Therefore according to me in above case, service tax should be deposited either by making payment or by utilizing CENVAT credit.
25 November 2011
But I have seen the letter of Department of Post, Delhi regarding this and according to CAG they can not pay the government payments either by cash or cheque but only by way of book entry adjustment.
CAclubindia
