interest paid by mistake.

[priyesh agrawal]

sir,

assessee was not liable for interest on service tax but had paid by mistake. how can we adjust this amount. service tax and cess are already paid. can we get refund on this amount or can we adjust in next challan?

[KASTURI SETHI]

Only refund is option. You cannot adjust interest towards future liability. Only Service Tax can be adjusted under Rule 6(4 A & B) of Service Tax Rules. So apply for refund of interest to the AC/DC-in-charge of Division.

[priyesh agrawal]

Thank you, sir 

AI Summary

Mistaken payment of interest: refund only; cannot be adjusted against future tax liabilities, seek refund from division in charge. Mistaken payment of interest on service tax cannot be adjusted against future liabilities; the taxpayer must apply for a refund of the interest. Only service tax (and cess) may be adjusted under the service tax adjustment rules; interest paid by mistake is not eligible for such adjustment. The refund application should be submitted to the divisional officer (AC/DC in charge).