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

Service tax double demand: ensure proof of prior payment to seek administrative adjustment and contest SCN. Branch received an SCN for service tax on advances despite head office payment; primary defense is producing documentary evidence of prior payment by the HO and pursuing both adjudication (respond to SCN and appeal if needed) and administrative remedies (contra adjustments, letters to CAOs and Commissioners) to prevent a duplicate demand on the same taxable event.