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Advance service tax

KUMAR GAURAV (.) (31 Points)

24 January 2016

can i adjust excess paid service tax in my next return. if yes then what is its procedure

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6 Replies

khushal (ACA; CS Professional Gr. II & IV Cleared; Pursuing ACCA UK & Bcom Graduate) (63 Points)
Replied 24 January 2016

Hi Gaurav,

Excess paid Service tax can be adjusted against dues in next return. Just show the service tax amount excess paid in current return. However If the service tax return doesn't shows the amount of excess paid ; Then revise the return which is allowable within 90 days of filing service tax return.

Regards,

Khushal Mundra

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vishak (accounts) (488 Points)
Replied 24 January 2016

Where will be shown in st3 the excess amount paid ?

KUMAR GAURAV (.) (31 Points)
Replied 26 January 2016

but how i claim same challan in next return , if i claim same challan then it is overbook in service tax department's software?

CA Aravind Penugonda (Chartered Accountant) (311 Points)
Replied 26 January 2016

Dear Mr.Gaurav,

Law:

Excess paid service tax can be adjusted against his dues in the succeeding month or quarter. (Rule 6 (4A) of Service Tax Rules) However, if such excess paid is on account of interpretation of law, taxability, valuation or applicability of any exemption notification, then such adjustment is not permissible under the law.

Disclosure in ST-3 return:

In "Paid-Service" sheet of ST-3 return, disclose against the field of "By adjustment of excess amount paid earlier as service tax and adjusted in this period under Rule 6 (4A) of Service Tax Rules" (D5).

CA Aravind Penugonda (Chartered Accountant) (311 Points)
Replied 26 January 2016

Dear Mr. Gaurav,

You have to refer the same challan in which excess tax has been paid. It does not amount to overbooking in the Service Tax Department's software rather it adjusts from that challan and further it helps Department in identifying by which challan you have deposited in excess.

Hope it is clear.