Service tax paid under wrong assessee code

This query is : Resolved

ashay (Querist)
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02 March 2016 We have two manufacturing units both registered under same pan number but having different service tax registration numbers. During the payment of service tax liability, we had mistakenly paid service tax under wrong unit assessee code. Please let me know the remedies available with regards to the same.

Suresh Ramaswamy

Suresh Ramaswamy (Expert)
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04 March 2016 In case, both the STCs are providing taxable service, then the best course to avoid all confusion and conflicts is to treat the amount paid as advance and pay the amount again in the correct STC number along with interest. In the wrong STC, the challan need not even be mentioned except in the month it is adjusted.

Technically, you may write to Accounts Officer of your city / town through your jurisdictional AC/DC of Service Tax - cc Range Superintendent to have the credit transferred to the correct STC Number. This process may take anything from two weeks to six months. But having informed your Range Superintendent & Jurisdictional AC / DC, you are protected from recovery proceedings.

When you file your ST - 3 and enter the CIN with wrong STC Number in the correct return - an error message will be recorded - "The said challan no xxxxxxxxxxxxxxxxxxx does not exist or does not match the assessee number" - bringing it to the notice of the Department. The Department will promptly start corresponding with you for payment of this amount, since it is not reflected in their system to your credit. Your action even before filing the ST - 3 will strengthen your claim that this occurred due to clerical oversight - and your reply no action be taken till the above rectification will stand.

I would still advise following my first suggestion if possible, because it would save untold harassment and trouble for the assessee.