CA SUBBIAH K (SENIOR MANAGER - F&A) (105 Points)
29 November 2010Dear friends..
Pls clarrify immediately...
I have paid the service bill on 29.09.2010, on which i took the input credit for the month of Sep'10 and filed the half yearly service tax return too...
But the payment cheque has been returned (Dishonoured)... and subsequently cleared on 25.10.2010...
My doubt is...
whether my stand of taking credit for the month Sep'10 is correct.....?
Or It is related to Oct'2010...
Satish
(CA Final Student)
(479 Points)
Replied 29 November 2010
If you have sufficient closing credit in ST 3 to cover the payment of service tax equal to the amount of credit availed against a dishonoured cheque, your ST 3 is correct. Else, you need to pay service tax equal to such credit with interest. You can availed the credit of service tax for october 10 and can utilise the same towards payment of service tax for the month of october 10 or quarter ended Dec 10 as the case may be.
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 30 November 2010
refer your GAR7 and read carefully the contents therein,
it appears that without getting GAR7 in hand u filed the return,
if GAR7 is related to sept then the payment is to be accounted for sept, otherwise its for oct.
again the last date of return submission is 25th oct, so u need not to worry much if the GAR7 is in order. a
Satish
(CA Final Student)
(479 Points)
Replied 30 November 2010
Mr. U S S,
where is the question of GAR arising ? Subbiah is talking about payment of service bill on which credit of CENVAT is allowed & the issued cheque is bounced. Hence hi is not entitled to cenvat credit for Sept 10. The cheque is cleared in Oct & hence he is entitle to the credit for Oct 10. He is not talking about payment of Service tax thru GAR 7.
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 30 November 2010
sorry, i hv overlooked and assumed that its net tax paid cheque returned,
in this case the date of service bill / presentation date is the master record for taking credit,
Satish
(CA Final Student)
(479 Points)
Replied 01 December 2010
are you sure Mr. Sharma that credit can be availed on the date of Service bill irrespective of when the service bill is paid ?
CA. Vaibhav Pabby
(ACO)
(31 Points)
Replied 01 December 2010
As per sub-rule (7) of Rule 4 of the CENVAT Credit Rules, 2004,
“Credit in respect of input service shall be allowed, on or after the day on which payment is made of the value of input service and the service tax paid or payable as is indicated in invoice, bill or as the case may be, challan referred to in Rule 9”.
so according to me, credit should be taken in october
Satish
(CA Final Student)
(479 Points)
Replied 01 December 2010
CA Vaibhav has made it clear for you Mr. Sharma!
suryasasithakumar
(audit assistant)
(29 Points)
Replied 01 December 2010
hi pl let me know the answer for this ,
is there some minimum time limit between two refund application or whether two quarter applications can be filed together at a time
CA. Vaibhav Pabby
(ACO)
(31 Points)
Replied 01 December 2010
Please clarify your query
FYI Following are rules for refund & adjustment
| [(1A) |
Without prejudice to the provisions contained in sub-rule (1), every person liable to pay service tax, may, on his own volition, pay an amount as service tax in advance, to the credit of the Central Government and adjust the amount so paid against the service tax which he is liable to pay for the subsequent period: Provided that the assessee shall,- |
|
| (i) | intimate the details of the amount of service tax paid in advance, to the jurisdictional Superintendent of Central Excise within a period of fifteen days from the date of such payment; and | |
| (ii) | indicate the details of the advance payment made, and its adjustment, if any in the subsequent return to be filed under section 70 of the Act;]18 |
Explanation: For the removal of doubt, it is hereby clarified that in case the value of the taxable service is received before providing the said service, service tax shall be paid on the value of service attributable to the relevant month, or quarter, as the case may be.
(2) The assessee shall deposit the service tax liable to be paid by him with the bank designated by the Central Board of Excise and Customs for this purpose in Form TR-6 or in any other manner prescribed by the Central Board of Excise and Customs.
[ Provided that the assessee, who has paid service tax of rupees fifty lakh or above in the preceding financial year or has already paid service tax of rupees fifty lakh in the current financial year, shall deposit the service tax liable to be paid by him electronically, through internet banking.]10
(2A) For the purpose of this rule, if the assessee deposits the service tax by cheque, the date of presentation of cheque to the bank designated by the Central Board of Excise and Customs for this purpose shall be deemed to be the date on which service tax has been paid subject to realization of that cheque.
(3) Where an assessee has paid to the credit of Central Government service tax in respect of a taxable service, which is not so provided by him either wholly or partially for any reason, the assessee may adjust the excess service tax so paid by him (calculated on a pro rata basis) against his service tax liability for the subsequent period, if the assessee has refunded the value of taxable service and the service tax thereon to the person from whom it was received.
(4) Where an assessee is, for any reason, unable to correctly estimate, on the date of deposit, the actual amount payable for any particular month or quarter, as the case may be, he may make a request in writing to the Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise, as the case may be, giving reasons for payment of service tax on provisional basis and the Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise, as the case may be, on receipt of such request, may allow payment of service tax on provisional basis on such value of taxable service as may be specified by him and the provisions of the Central Excise (No.2) Rules, 2001, relating to provisional assessment, except so far as they relate to execution of bond, shall, so far as may be, apply to such assessment.
[(4A) 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 by him against his service tax liability for the succeeding month or quarter, as the case may be.
(4B) The adjustment of excess amount paid, under sub-rule (4A), shall be subject to the following conditions, namely:-
(i) excess amount paid is on account of reasons not involving interpretation of law, taxability, classification, valuation or applicability of any exemption notification,
(ii) excess amount paid by an assessee registered under sub-rule (2) of rule 4, on account of delayed receipt of details of payments towards taxable services may be adjusted without monetary limit,
(iii) in cases other than specified in clause (ii) above, the excess amount paid may be adjusted with a monetary limit of [ Rupees one lakh rupees ]19 for a relevant month or quarter, as the case may be,
(iv) the details and reasons for such adjustment shall be intimated to the jurisdictional Superintendent of Central Excise within a period of fifteen days from the date of such adjustment.]
suryasasithakumar
(audit assistant)
(29 Points)
Replied 01 December 2010
hi frds
please clarify me immediately
A Ltd has purchased goods worth Rs 1 lakh from B Ltd. B Ltd has charged freight charges Rs 1,000 and shown separately in invoice. Should A Ltd deduct TDS on the freight charges?
CAclubindia
