17 March 2009
Sir, If we have received tha amount from the party @ 12.36% as service tax can we deposit 10.30% as service tax to the tax deptt and show balance amount in service tax creditors/in misc receipt of the party. Further tell me also that if party has given advance payment to us @12.36 % . then what to do.
If you have received ST @ 12.36% then you are under statutory obligation to deposit ST @ 12.36% with the department. [Applying the doctrine of Unjust Enrichment]
It means that if you receive surplus amount in the name of some other person, then you can't use that surplus for your own benefit. Either you refund the surplus to the client or deposit it with the department.
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