Adjustment of excess paid service tax

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This query is : Resolved

pradeep lama (Querist)

10 April 2009 if we deposit excess service tax during the year, then can we adjust the excess paid with next year service tax liability?
or it is allowable to adjust only to quarter pertaining the same year? so is it better to adjust, if applicable or file for refund?

Vanita Rathi

Vanita Rathi (Expert)

10 April 2009 Self adjustment is possible only in cases like – (a) Excess payment since exact amount to be paid could not be calculated (b) when tax is to be paid by 31st March and calculation of exact amount is practically impossible (c) calculation mistakes.
It is available upto Rs. 50000 and it should be applied for within 15 days of excess payment.
Hence for the whole year adjustment is not possible. However, u can claim for the last quarter.

CA Nitin Wadhwani

CA Nitin Wadhwani (Expert)

02 July 2009 Yes you can in the next payment period and limit is raised to 1 Lac from 01.03.2008.

Vijay Chitte

Vijay Chitte (Expert)

03 July 2009 Yes, as per rule 6(4B)(iii)provides self adjustment of excess amount of service tax paid in certain circumstances with monertary limit Rs.1 lac for subsequent month.

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