This query is regarding the adjustment under rule 6(3) and representation thereof in form ST-3
1- Mr. A booked a Flat during June-2011 and he had paid Rs. 2,00,000/- towards booking amount. We had raised bill in June-2011 on receipt basis and billed the full value with Basic amount i.e. Rs. 194979/- & Service Tax Rs. 5021/-(2.575% of Basic).
Tax amount Rs. 5021/- paid in 05-Jul-2011 against Service tax liability of Jun-2011. The Challan number was XXXXX dated 05-Jul-2011.
Mr. A cancelled his flats in November 2011 and we had taken adjustments under Rule 6(3)
2- A New Customer Mr. B booked a Flat during Nov-2011. He Paid Rs. 150000/- as booking amount in Nov-2011. Demand raised in Nov-2011 on receipt basis as follows
Basic amount is Rs. 146234/- & Service Tax Rs. 3766/-(2.575% of Basic).
Therefore, service tax Liability for Nov-2011 (Payable on Dec-2011) was Rs. 3766/-.
But service tax was not paid in Dec-2011 (against Nov-2011 Liability). And adjusted under rule 6(3).
Rs. 3766/- (Mr. B) adjusted in Nov-2011 against cancellationof Rs. 5021/- (Mr. A)& balance 1255/- will be adjustable for next month.
Now, The booking of Mr. B is also cancelled in Oct-2012 one year after the booking.
3- A third Customer Mr. C booked a new flat in Oct-2012. He paid Rs. 150000/- as booking amount in Oct-2012.Demand raised in Oct-2012 as per agreement detailed below
Basic amount is Rs. 146234/- & Service Tax Rs. 3766/-(2.575% of Basic).
The service tax liability for Oct-2012 (Payable on Nov-2012) was Rs. 3766/-
But service tax was not paid in Nov-2012 (against Oct-2012 Liability). Andreadjusted under rule 6(3).
Rs. 3766/- (Mr. C) adjusted in Oct-2012 against cancellation of Rs. 3766/- (Mr. B).
Query-
In Oct-2012 Service tax payable Rs. 3766/- against booking of Mr. C. Which was adjusted against booking cancellation of Mr. B in Oct-2012. But we didn’t pay any amount against Mr. B Booking in Nov-2011. And it was readjusted against booking cancellation of Mr. A in Nov-2011.Booking date was Jun-2011 for Mr. A. Payment of Rs. 5021/- done in 05-Jul-2011 against Mr. A booking & Challan number was XXXXX.
Against Oct-2012 cancellation of Mr. C, We have to submit challan number with payment date in Service tax Return. Can we use Challan number XXXXX dated 05-Jul-2011 against Oct-2012 cancellation? This may result over adjustments against the same challan.
If we make sum of adjustment made for the challan no XXXXX, it will greater the Challan amount i.e. Rs 5021/-
Please repond
CAclubindia
