Clarification - payment of tax to department without receiving

[govindaraju velugula]

one of client paid service tax with availing threshold exemption limit of Rs.10,00,000/- during the current financial year 2009-10. whether same has been adjusted in the future tax liability? The the service tax was paid to deptt. without claiming from service receiver Please clarify the if there is any steps to adjust in future payments.

AI Summary

Clarification Sought on Adjusting Service Tax Paid Despite Rs. 10,00,000 Exemption in 2009-10 Financial Year A client paid service tax despite being eligible for a threshold exemption of Rs. 10,00,000 during the 2009-10 financial year and seeks clarification on adjusting this payment against future tax liabilities. One respondent noted that since the exemption was availed, there is no error in the tax payment. Another suggested issuing debit notes to the service receiver for the uncollected service tax, allowing any received amounts to be adjusted against the previously paid tax.