EXCESS SERVICE TAX PAID IN MARCH

[SUMEDH AYARE]

IF EXCESS SERVICE TAX IS PAID ON 31.03.2013. CAN I ADJUST THE EXCESS AMOUNT TOWARDS THE LIABILITY OF APRIL 2013 OR HOW TO CLAIM THE REFUND.

[YAGAY and SUN]

You can adjust it in the month of April and intimate to the concerned authority.

[NANDKUMAR SAGWEKAR]

Yes you can adjust the excess payment of March 2013 in the month of April 2013 , you have to intimate the excess to superintendent of service tax and obtain acknowledgement.

Thanks

ANAND M SHEMBEKAR

CELL 9421187122

 

[RAM SHARMA]

Dear Experts,

If we have paid excess amount by mistake then in which rule we can adjust this amount. Pl clerify.

Thanks

[YAGAY and SUN]

Kindly Refer Rule 6(3) of the ST rules,.

Self Adjustment of Excess Tax paid:

The monetary ceiling of self-adjustment of service tax has been removed. Now, an assessee can self-adjust excess service tax paid up to any amount.

Now, the assessee is no longer required to intimate the details and reasons for such adjustment of excess service tax paid to the jurisdictional superintendent of Central Excise.

The assessee is required to comply with one condition i.e. excess amount paid is not due to any of the following four reasons-

(i) interpretation of law,

(ii) taxability,

(iii) valuation , or

(iv) applicability of any exemption notification

[RAM SHARMA]

Dear Experts,

Is this rule will be applicable for Service Receiver also. Kindly confirm.

Thanks 

[ranganath shenoy]

Dear Sirs,

One more question.Is it necessary that it should be adjusted in the very next month .Do we have the option to adjust the excess in some other month

 

[YAGAY and SUN]

Yes, service recipient can adjust it but only under reverse/partial reverse charge mechanism.  Such adjustment can be done within 90 days of excess payment of service tax.

AI Summary

Self-adjustment of excess service tax permitted; adjust to the next period or within 90 days under reverse charge, subject to exclusions.
Rule 6(3) permits self-adjustment of excess service tax without a monetary ceiling and generally without prior intimation, but disallows adjustment where the excess arises from legal interpretation, taxability, valuation or exemption applicability; service recipients may adjust only under reverse/partial reverse charge and within the prescribed period, otherwise refund procedures apply.