Adjustment of excess amount paid

[Basavaraj S]

If the assessee has paid service tax on billing & not on receipt basis, can he adjust the excess payment of ST paid in the next quarter. If so, under which Rule? The assessee has not intimated the Department within 15 days neither has he filed the return.

[Surender Gupta]

Intimation to the department is procedural lapse. You may intimate the department alongwtih Return and claim the benefit of excess payment of service tax. For procedural lapse, department may initiate penalty proceedings but should not deny the substantial benefit.

AI Summary

Excess Service Tax Adjustment Allowed Without Prior Notice, Penalty Possible for Procedural Lapse, Substantial Benefit Retained An individual inquired about adjusting excess service tax paid on a billing basis rather than a receipt basis and whether it can be adjusted in the next quarter without prior intimation to the department. The response indicated that while failing to notify the department within 15 days is a procedural lapse, the individual can still inform the department and file the return to claim the benefit of the excess payment. Although there may be penalty proceedings for the procedural lapse, the substantial benefit should not be denied.