Service Tax on advance was paid by Head Office, while SCN has been issued on Branch

[K Balasubramanian]

By mistake, Service Tax on advance was paid by Head Office. However, services were rendered by Branch which is separately registered. SCN has been issued on Branch demanding tax on advances. What is the remedy?.

[HIMANSHU JARIWALA]

Dear Sirs, Payments made to clearing & forwarding agents attracts tds on whole bill or only on agency charges ? If C&F agent issue combined bill for out of pocket expanses like insurance charges, and other costume charges for which supporting documents are available and agency charges then is tds is required on whole bill or only agency charges? Please reply.... Thanks in advance...

[satish nair]

Law does not provide any remedy in such situations. However if your can produce evidence that service tax has been paid by the HO then there is a good chance that such payment will be allowed - but at the tribunal level.

[Rakesh Chitkara]

Tax can not be demanded on the same event twice. Please answer the SCN. Simultaneously write to CAO of both jurisdictions to make contra adjustments. Also write a letter to Commissioners of both jurisdictions pointing out the facts of the case. Case is to be tackled at two levels : Adjudication, as well as, administrative level. Give me a few days. I shall furnish case-laws to support your stand. Have no fear. Case will ultimately be decided in your favour, although I doubt whether it will be at adjudication stage. On appeal, you will win.

AI Summary

Head Office paid service tax on advance; Branch issued SCN. Evidence of payment may resolve issue on appeal. A Head Office mistakenly paid service tax on an advance, while the services were provided by a separately registered Branch. A Show Cause Notice (SCN) was issued to the Branch demanding tax on the advances. One response suggests providing evidence of the Head Office's payment to potentially resolve the issue at the tribunal level. Another advises against double taxation and recommends addressing the SCN while coordinating with the Chief Administrative Officers and Commissioners of both jurisdictions for adjustments. It is suggested that the case may not be resolved at the adjudication stage but is likely to succeed on appeal.