Excess Amount Paid under RCM

[Asked by Guest]

A company had paid its RCM liability under works contract on the basis of Advance Payment made to the contractor and the same have been shown under ST3. Actual work done and invoice received subsequently were less than the amount paid to the contractor.

What all needs to be done in this case, for the extra amount discharged under RCM to the government ?

AI Summary

Excess RCM payment remedy: adjust against future liability or claim refund, recorded in ST-3 return.
Excess payments under the Reverse Charge Mechanism may be adjusted against future service tax liability or claimed as a refund, and such adjustment is to be shown in the ST-3 return; separate departmental intimation is not required. Rule 6(4A) and 6(4B) of the Service Tax Rules, 1994 govern eligibility, the term assessee includes the RCM payer, and payments attributable to disputes over interpretation, taxability, valuation or exemption applicability are excluded from relief under Rule 6(4B).