If I paid some excess Service Tax/Interest, Is it possible to adjust it in future ?
Tehsinkhan Pathan
(CA CMA DISA(ICAI) B.COM)
(3956 Points)
Replied 29 January 2011
Yes ,you can adjust it ...............
SANYAM ARORA
(“It's hard to beat a person who never gives up.”)
(20168 Points)
Replied 29 January 2011
Nirav Worah
(CHARTERED ACCOUNTANT)
(396 Points)
Replied 29 January 2011
Excess amount paid may be adjusted provided that the details and reasons for such adjustment are intimated to the jurisdictional Superintendent of Central Excise within a period of fifteen days from the date of such adjustment.
U S Sharma
(glidor@gmail.com)
(21056 Points)
Replied 30 January 2011
Service tax excess payment is adjustable in future . see the rules as under
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(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. https://www.servicetax.gov.in/st-rules.htm
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but you have put another query of interest also, so request you to put the query with more details,
options are
i) if the service tax and interest is for previous periods and paid with interest then no refund is possible.
ii) if the service tax is related to current / running period and the tax is paid in excess for certain month, then it can be adjusted with subsequent months of same return period.
iii) if the service tax is related to current / running period and its not possible to adjust the amount fully in that return period then one has to carry forward the excess tax but be strict to submit the return within time, intimate the Range officer regarding the excess balance ( not mandatory to intimate, but if he is informed then he will not ask further clarifications when adjusted in future) and then adjust the same in forthcoming periods tax liability.
U S Sharma
(glidor@gmail.com)
(21056 Points)
Replied 30 January 2011
REFUND & ADJUSTMENT
Q.28 Is the Service Tax payable by the assessee, even in cases where his clients do not pay for the service rendered or pay only a part of the bill raised in this regards?
Ans. No. in terms of the present law, the person providing the taxable service to some one is liable to pay the Service Tax on the value of the taxable service realized from the clients. The Service Tax is required to be paid only on the value of taxable services received in a particular month or quarter, as the case may be, and not on the gross amount charged or billed to the client. However, in all such cases where the amount received is less than the gross amount charged/billed to the client, the service tax assessee are required to amend the bills, either by rectifying the existing bill or by issuing a revised bill and properly endorsing such change in the billed amount. In case an assessee does not do so, his liability to pay service tax shall be on the amount billed by him to the client for the services rendered.
Q.29 Can any adjustment of tax liability be made by the assessee on his own in cases where Service Tax has been paid in excess?
Ans. Yes, Facility for adjusting excess payment of service tax by the assessee towards future liability is now provided for in the law. In cases, where an assessee has paid to the credit of Central Govt. 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 prorata basis against his service tax liability for the subsequent period, provided that the assessee has refund the value of taxable service and the service tax thereon to the person from whom it was received. However, the assessee is required to file the details in respect of such suo-moto adjustments done by him at the time of filing the service tax returns. In other cases of excess payment, the refund claim have to be filed with the department.
Q.30. What is the procedure for claiming refund?
Ans. The procedure for claiming refund for the amount due from the Department is mentioned here in below:-
- Submission of application in prescribed Form-R in triplicate to the jurisdictional Assistant Commissioner (Service Tax).
- Application should be filed within the prescribed period i.e. before the expiry of six months from the relevant date as defined in Section 11B of the Central Excise Act, 1944.
- Application shall be accompanied by documentary evidences to establish that the amount of Service Tax in relation to which such refund is being claimed has been paid by the assessee in excess and the incidence of such tax had not been passed on by the assessee to any other person.
harish .k
(STUDING)
(306 Points)
Replied 30 January 2011
yes you can adjust in next month or Quarterly as the case may be i,e ( As individual or as company ) the excess amount paid as service tax
GSTR 9 and 9C for FY 23-24 as amended by Notification 12/2024 dated 10th July 2024(with recording)
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