Demand of service tax already deposited

[Guest]

I am running security services and providing security services to one of PSU, and IAcharged services tax but PSU deduct it at their end and deposited in desired bank, and issued certificate of deposited, now service tax department demand us for depositing service tax which PSU has already been deposited, wheather it is genuine to pay double tax

[Madhukar N Hiregange]

The procedure followed is not correct. However the Tribunal may appreciate the argument that the tax has been paid albeit following the incorrect procedure. I remember some judgement ( recent ) in this reagrd which may come to your rescue.

[Guest]

In service tax there is no such provision (barring few exception) that a service receiver at his discretion pay service tax on behalf of service provider. However if such PSU has deposited service tax on TR-6 Challan mentioning the particulars of yours, you may find easy to get relief.

AI Summary

Security services firm challenges double service tax demand; argues tax already paid by PSU client under Section 68. A security services provider is facing a demand from the service tax department to pay service tax, which has already been deducted and deposited by a Public Sector Undertaking (PSU) client. The provider questions the validity of paying the tax twice. One respondent mentions that the procedure is incorrect but suggests that a tribunal might accept the argument since the tax has been paid, albeit incorrectly. Another respondent notes that generally, service tax cannot be paid by the service receiver, except in specific cases, but relief might be possible if the PSU used the correct documentation.