Adjustment of R & D Cess / Notificaitton No 14/2012 ST

[Yatin Bhopi]

Dear all

Dear Sir, We are paying R & D cess on import of technology. We want to avail benefit of Notification no 14/2012-ST to adjust ST payment of Int. Prop. Ser. after fulfil all conditions therein.  we have paid the R&D Cess Rs. 50000/- my liability for the month is 150000+3000+1500=154500/-  my query is my liability will be 1) 100000+3000+1500=104500/- or 2) 101455+2030+1015=104500/-(by back calculating 50000 to calculate Cess and SHED Cess) or 3) 100000+2000+1000=103000/- please guide

AI Summary

R&D cess adjustment: exemption offsets service tax liability, allowing deduction of cess from net service tax payable.
An exemption permits deduction of the R&D cess paid on imported technology from the total service tax liability on the taxable service involving import of technology, so that the taxpayer pays only the balance service tax after subtracting the R&D cess; the advisory exchange raises but does not resolve questions about whether education cess and SHE cess apply to the exempted portion.