If anybody pays service tax under reverse charge more than the actual liability , can he use the excess amount paid for next months' liability or he has to claim refund for the same.
Is there any notification for this & any form / format to be submitted to department.
07 January 2015
Rule 6(4) of Service Tax Rules 1994, State that 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 y him against his service tax liability for the succeeding month or quarter, as the case may be.
Therefore, you can adjust such excess payment against liability of succeeding month or quarter Service tax liability.
Further, no form is specified for this purpose therefore, book adjustment entry would be sufficient.
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