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excess payment of service tax

RAJIW KUMAR SINHA (Chartered Accountant) (109 Points)

03 March 2010

My clients M/S ABC LTD. engaged in the manufacture of Plasticizers and registered with the service tax department under the category of goods transport agency. During the quarter ended 30-09-2009 and 31-12-2009 company has paid freight outward/inward amounting rs. 400000 and 850000 respectively. service tax paid @ 10% on freight amount without obtaining abatement of 75%. kindly clarify whether the excess service tax paid will be refundable.

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abhi (article) (21 Points)
Replied 03 March 2010

Originally posted by : RAJIW KUMAR SINHA
	My clients M/S ABC LTD. engaged in the manufacture of Plasticizers and registered with the service tax department under the category of goods transport agency. During the quarter ended 30-09-2009 and 31-12-2009 company has paid freight outward/inward amounting rs. 400000 and 850000 respectively. service tax paid @ 10% on freight amount without obtaining abatement of 75%. kindly clarify whether the excess service tax paid will be refundable.

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EKALABYA TALUKDAR (SERVICE TAX CONSULTANT) (666 Points)
Replied 03 March 2010

OBVIOUSLY REFUNDABLE

BUT I WILL ADVICE YOU SHOW MORE PAYMENTS IN THAT QUARTER AND REGULARISE YOUR ACCOUNTS

YOU CAN ALSO SHOW ADVANCES FOR THE JAN_2010 TO MAR_2010 AND SUBMIT THE RETURN ON APRIL_2010

STILL IF ANYTHING REMAINS SHOW IT IN THE RETURN AS ECESSS PAYMENT WHICH WILL BE REGULARISED NEXT RETURN.

CASH REFUND FROM THE AUTHORITY IS MORE COMPLICATED, TIME AND MONEY CONSUMING

RAJIW KUMAR SINHA (Chartered Accountant) (109 Points)
Replied 03 March 2010

But mr. Talukdar, if an assessee paid excess amount of service tax ,by the reason which involves interpretation of law, taxability, classification , valuation or applicability of any notification , then assessee cannot make self adjustment of such tax paid. however in such situation assessee always has the option to apply for refund u/s 11Bof central excise act , 1944 in form R , within 1 year from the date of making payment of service tax. hence my thinking we can not setoff excess payment of service tax.

Ritesh (Financial Controller) (51 Points)
Replied 17 March 2010

Refund procedures are too lenghty. I feel one should first calculate the Cenvat credit admissable in this case. Claim Cenvat credit for the period when abatement was not taken.

Are there are any other avenues under which service tax was required to be paid.

Only if these points cannot be feasible enough claim for refund.

Refund procedures are required to be carried out meticulously and takes a very long time.

Prabhat Kumar (Advocate & Consultant) (1912 Points)
Replied 17 March 2010

excess payment of duty can be claimed under section 11B of the Central excise Act within one year from the date of payment and the department has to decide the claim within within 3 months from the date of the application failing which interest is payable as per section 11BB of the act.