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.

AI Summary

R&D cess adjustment: excess cess may be shown as advance and adjusted in subsequent service tax return.
Taxpayer paid 5% R&D cess on imported technology and faces a remaining service tax plus education and SHE cesses; adviser recommends treating any excess payment as an advance/excess paid in the ST-3 return and adjusting it against liabilities in a subsequent return period.