Adjustment of R & D Cess

[Pawan Kumar]

Sir,

I have imported tech. from aboard for ₹ 2.5 Cr, on which i have deposited RandD cess @ 5% i.e. ₹ 12,50000/-, Now i have to pay balance service tax amt ₹ 18,40,000/- ie.(12.36% -5%) as part of Service tax. But problem is that, when i filling ST return, details as under,

Gross Amt : 2,50,00,000

ST Amt @ 12% : 30,00,000

Less RandD Cess paid : 12,50,000

Net Service Tax payable : 17,50,000

Educ. Cess 2% : 35,000/-(auto calculated)

SHE Cess 1% : 17,500/-(auto calculated)

My queries, shall I pay ₹ 18,02,500/-(Rs 17,50,000 + 35000+17500) or ₹ 18,40,000/-

If I pay ₹ 18,40,000/- then how can I adjust the amount in ST-3 Return.

Please advice me.

[YAGAY andSUN]

Dear Pawan,

You may show it excess paid or advance paid and in the subsequent period you may adjust it.

Regards,

YAGAY and SUN

(Management, Business and Indirect Tax Consultants)

AI Summary

Clarification sought on service tax calculation and adjustment after paying 5% R&D cess on imported technology. An individual inquired about the correct calculation and adjustment of service tax after paying a 5% R&D cess on imported technology valued at 2.5 crore. They calculated a net service tax payable of 17,50,000, with additional education and SHE cess totaling 52,500, leading to a total of 18,02,500. They were uncertain whether to pay this amount or 18,40,000 and how to adjust it in the ST-3 return. A consulting firm advised that any excess payment could be shown as advance paid and adjusted in the subsequent period.