Excess Payment of Service Tax

[RAJENDRA KHOMNE]

Sir,

Good Morning,

For year end, Service Tax Due date is 31st March. But some party's bill not come before 31st March, hence we paid service tax approximately. After all bills booking we find that we have paid service tax excess in some services & short in some services. My query is can we adjust excess service tax for short payment. (For Example. for Advocate Service we have paid ₹ 2800/- Short & for Manpower we have paid ₹ 2800/- Excess)

And other query is if we paid excess service tax can we adjust it for next month payment.

Sir, Pl Guide

Thanks,

Khomne R. M.

AI Summary

Clarification: Rule 6(4A) of Service Tax Rules, 1994 allows excess payments to adjust only future liabilities, not short payments. A participant raised a query about adjusting excess service tax payments against short payments and future liabilities. An expert clarified that under Rule 6(4A) of the Service Tax Rules, 1994, excess payments can only be adjusted against future liabilities, not against short payments, which require payment of the difference with interest. Another participant suggested that since service tax codes are for statistical purposes, excess payments in one category should be adjustable against liabilities in another. This prompted a discussion on the relevance of old accounting codes and the necessity to address such issues with the tax department to prevent procedural complications.