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Service tax??

Riya cahudhary (Job) (132 Points)

12 January 2012

a person get himself registerd under service tax and pay service tax,

but the question is that he is not liable to serice tax as he is under the thresold limit

now what step should be taken?????????

can he claim the refund ?

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2 Replies

Yogesh Bhandari (CA FINAL Student) (429 Points)
Replied 12 January 2012

No, he cannot claim refund. Once the amount of service tax, he collects from client the same should be deposited with the deptt. Further, if he refund the service tax amount to the client then on an application and proof of refund to client made before the respective superintendent, he can claim refund....

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CA Unnikrishnan Nair N (Chartered Accountant) (2083 Points)
Replied 12 January 2012

Yogesh is correct. Refund under service tax is always barred by the principle of unjust enrichment. They have to repay the tax collected and then approach the department for refund.