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Excess canvat refund of service tax

CA Adarsh Madrecha (Chartered Accountant) (200 Points)

21 June 2014

A partnership firm takes services from a person. Pays service tax on the service received. Provided only taxable service, but amount payable is less than the service tax paid on services received (that is, cenvat credit is excess ) Can we claim refund of this excess cenvat? Is there any time limit to carry forward this if refund is not available?

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3 Replies

Saurabh Maheshwari (B.com,ACA) (5923 Points)
Replied 21 June 2014

NO, a service receiver paying ST under reverse charge mecahnism cannot claim refund under Rule5B of CCR,2004(rule 5B is for s.provider providing services on which tax payable by s.receiver u/RCM).....the only option to carry forward credit of ST paid under RCM till the same can be utilised (can be c/f indefinitely) ....

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CA Adarsh Madrecha (Chartered Accountant) (200 Points)
Replied 21 June 2014

This is not a case of reverse charge. It is simple like vat, so my question is whether we can take cenvat refund when similar situation we get vat refund.