TaxTMI 
TaxTMI 
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?
interest paid by mistake.
23 Jun 2017 
2 Replies 
4314 Views Asked by
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). (AI Summary)
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). (AI Summary)