Adjustment /refund in case of excess pay in service tax

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Querist : Anonymous

Querist : Anonymous (Querist)

29 November 2011 If my liability in higher education cess is 698/-but i paid 2000/- ,what are the possibilities for me for the balance amount
(2000-698), either i should go for refund or adjustment in next month...if adjustment, please can u give me the procedure.

Pragnesh

Pragnesh (Expert)
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29 November 2011 Same can be adjust agst. any future tax liability.

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PUNEET GOYAL

PUNEET GOYAL (Expert)
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29 November 2011 As per provision Service Tax Rules, 1994
(4A) Notwithstanding anything contained in sub-rule (4), where an assessee has paid to the credit of Central Government any amount in excess of the amount required to be paid towards service tax liability for a month or quarter, as the case may be, the assessee may adjust such excess amount paid by him against his service tax liability for the succeeding month or quarter, as the case may be.
(4B) The adjustment of excess amount paid, under sub-rule (4A), shall be subject to the following
conditions, namely:- (i) excess amount paid is on account of reasons not involving interpretation of law, taxability, classification, valuation or applicability of any exemption notification,
(ii) excess amount paid by an assessee registered under sub-rule (2) of rule 4, on account of delayed
receipt of details of payments towards taxable services may be adjusted without monetary limit,
(iii) in cases other than specified in clause (ii) above, the excess amount paid may be adjusted with a
monetary limit of two lakh rupees for a relevant month or quarter, as the case may be,
(iv) the details and reasons for such adjustment shall be intimated to the jurisdictional Superintendent of Central Excise within a period of fifteen days from the date of such adjustment.]
Thus on the basis of above fact and provision you may adjust the excess amount paid against service tax liability of subsequent month or quarter ,as the may be,. In this you have to intimate the details and reasons for such adjustment to the jurisdictional Superintendent of Central Excise within a period of fifteen days from the date of such adjustment.

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Querist : Anonymous

Querist : Anonymous (Querist)

30 November 2011 if the excess payment of interest is made with respect to Higher education cess ,can we adjust it or claim refund .

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