Adjustment of excess service tax deposited

[JOSHIL JAIN]

Dear Sir, One of my client has wrongly depoisted excess service tax in previous month. Now whether he can adjust the same in this month service tax liablity and next month service tax liablity. Please advise. Joshil Jain

[Surender Gupta]

Yes, your client can adjust the excess payment of service tax paid in the previous month / quarter subject to the limitations and conditions prescribed in Rule 6 of Service Tax Rules, 1994.

AI Summary

Excess Service Tax Payment Can Be Adjusted Against Future Liabilities Under Rule 6 of Service Tax Rules 1994 A client mistakenly overpaid service tax in the previous month. The query seeks advice on whether this excess payment can be adjusted against the current or next month's service tax liability. The response confirms that such an adjustment is permissible, provided it adheres to the limitations and conditions outlined in Rule 6 of the Service Tax Rules, 1994.