How to availing Notification no 14/2012 ST - RESEARCH & DEVELOPMENT CESS. - Service Tax

[Yatin Bhopi]

How to availing Notification no 14/2012 ST - RESEARCH & DEVELOPMENT CESS.
Dear experts We are paying technical assistance fees to our parent company. Since it is our associate company we make monthly provisions in the books and we are liable to pay service tax on this provisions under head Intellectual property service other than copy rights on this technical assistance fees. We are paying Research and Development Cess under provisions of section 3 of the Research and development Cess Act, 1986 (32 of 1986) to Reserve Bank of India on quarterly basis. We wish to avail benefit of Notification no 14/2012 ST dated 17.03.2012 to adjust Research and Development Cess paid against service tax liability under intellectual property service after fulfilling all conditions. My query is: How will we adjust the R & Cess in below cases. R & D cess is paid in April 15 ₹ 15000 Month Technical assistance fees Service tax Jan-15 ₹ 100000 14000 Feb-15 ₹ 100000 14000 Mar-15 ₹ 100000 14000 April-15 ₹ 100000 0 (liability is 14000 and cess paid is ₹ 15000 Or We have to just pay the service tax after deducting R & Cess Payable each month considering R & D cess will be paid in April 15 Month Technical assistance fees Service tax Jan-15 ₹ 100000 9000 (14000-5000) Feb-15 ₹ 100000 9000 (14000-5000) Mar-15 ₹ 100000 9000 (14000-5000) Can anyone guide? I hope have clarified my query correctly

Same query is posted earilier also but no one is replied. Please replay the query

AI Summary

Company Seeks Clarity on Using Notification No. 14/2012 ST for Offsetting R&D Cess Against Service Tax Liabilities A company seeks guidance on utilizing Notification No. 14/2012 ST to offset Research and Development Cess against service tax liabilities on technical assistance fees paid to its parent company. They inquire whether to adjust the cess monthly or in April when the cess is paid. Respondents advise that service tax can be reduced by the R&D Cess amount, provided the cess is paid within six months of the invoice date. The effective service tax rate should be calculated by subtracting the R&D Cess rate from the service tax rate, and adjustments can be made in the ST-3 return.