Dear Experts,
We have raised invoice to one party during the current year with service tax @ 12.36 and deposit the service tax on due basis.However we not received any amount from party.
Party was not agree with our claims and made court case.Now as per settlement we have waived off 50% of our dues and party remitted 50% amount with service tax @14.5%
We have already deposited 12.36 % Service Tax on our 100% dues
We received 50% of our dues @ 14.5%
How should we adjust/refund Service Tax...
Thanks....
Company Seeks Refund for Excess Service Tax Paid; Experts Advise Documentation for Safe Refund Process A company issued an invoice with a 12.36% service tax but later settled a dispute, receiving only 50% of the dues with a 14.5% service tax. The company seeks advice on adjusting or refunding the excess service tax paid. Experts suggest applying for a refund from the jurisdictional tax authority to avoid risks associated with self-adjustment, such as audit objections or penalties. They recommend providing documentation like contracts and settlement proofs to support the refund claim. The discussion emphasizes refunding as a safer option to avoid litigation and ensure compliance with service tax rules. (AI Summary)
TaxTMI 
TaxTMI 
