excess service tax /advance service tax paid

[sunil mehta]

A service provider ( partnership firm ) has paid excess service tax of Rs.120000/- for the quarter ending Oct'10 .The said amt.was paid last month in April,2011.The excess amount was paid due to wrong liability calculation for Oct'10 to Dec'10 Quarter by the accountant .The same amount has been adjusted and balance ser.tax was paid on 7/05/2011 ,for Quarter ending Jan'11 to Mar'11 .. Rule 6(4B) of service tax Rules,1994 ,says that...'such adjustment shall be intimated to the jurisictional suptd. within 15 days from the date of such adjustment ..

.' Query:- 1)Since ser.tax for qtr ending Jan'11 to Mar'11 was paid on 07/05/2011 and excess ser.tax of Rs.1.20 lacs was paid shorter by way of adjustment from which date 15 days will be reckoned for intimation purpose ? --15 days from 07/05/2011 or from 31/03/2011 (i.e last date of Jan-to mar' 11 qtr. )

Query:-2)Since excess tax  paid is rs. 1.20 lacs but rule 6(4B)(iii) allows only Rs.1.00 lac (now Rs.2.00 lac w.e.f. 01/04/2011) ,whether suptd. can deny credit of rs.1.20 lacs paid as it exceeds limit of rs. 1.00 lac ?(old limit upto 31/03/2011 )(new limit rs.2 lacs w.e.f.01/04/2011)

Query 3:-Whether above case falls under rule 6(4B)(iii) i.e.excess service tax paid

AI Summary

Firm Corrects Overpaid Service Tax; Adjustment Within Revised Rs. 200,000 Limit Validated Under Rule A partnership firm overpaid service tax by Rs. 120,000 due to an accounting error for the quarter ending October 2010. This excess was adjusted in the subsequent quarter ending March 2011, with the balance paid on May 7, 2011. The firm seeks clarification on the 15-day notification period for adjustments and whether the excess payment exceeding the previous Rs. 100,000 limit but within the revised Rs. 200,000 limit can be credited. The response clarifies that the adjustment date is May 7, 2011, the revised limit applies, and the rule is applicable.