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

Adjustment of excess service tax is permitted subject to procedural limitations and conditions under Rule 6. Excess payment of service tax made in a prior period may be adjusted against subsequent service tax liabilities for the current or following tax period, provided the taxpayer complies with the limitations, documentation and procedural conditions prescribed under Rule 6 of the Service Tax Rules, 1994.