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

Adjustment of excess service tax payments permitted if taxpayer intimates and files return, though penalty proceedings may follow. Taxpayers who paid service tax on billing instead of on receipt may intimate the department and file the return to claim adjustment of the excess payment in the subsequent period; failure to intimate or file is a procedural lapse that may attract penalty proceedings, but should not bar the substantive adjustment of excess tax paid.