Refund
This query is : Resolved
25 July 2012
DEAR SIR,
WHEN THE CONSIGNEE PAYS CONTAINER DETENTION
CHARGES WITH SERVICE TAX AT TIME OF REFUND SAME DETETION CHARGES SHOULD BE REFUNDED
WITH SERVICE TAX OR WITH OUT SERVICE TAX
WHEN THE CONSIGNEE PAYS CONTAINER DETENTION
CHARGES WITH SERVICE TAX AT TIME OF REFUND SAME DETETION CHARGES SHOULD BE REFUNDED
WITH SERVICE TAX OR WITH OUT SERVICE TAX
CMA Ramesh Krishnan
(Expert)
25 July 2012
why the refund?. what is nature of charges?
20 July 2025
Regarding your query on refund of container detention charges paid along with service tax:
Container detention charges are usually considered a service and service tax is paid on the same at the time of payment.
If the consignee pays detention charges including service tax, and later these charges are refunded (say due to dispute, error, or reversal), then:
On refund of detention charges:
The refund amount should include service tax component as well, because service tax was originally collected on that amount.
You cannot refund the charges without service tax, because service tax was part of the original payment and liability.
Essentially, refund of principal + service tax portion should be made to keep accounts consistent and avoid revenue leakage.
To summarize:
If detention charges were paid with service tax, then the refund should be made inclusive of service tax.
Container detention charges are usually considered a service and service tax is paid on the same at the time of payment.
If the consignee pays detention charges including service tax, and later these charges are refunded (say due to dispute, error, or reversal), then:
On refund of detention charges:
The refund amount should include service tax component as well, because service tax was originally collected on that amount.
You cannot refund the charges without service tax, because service tax was part of the original payment and liability.
Essentially, refund of principal + service tax portion should be made to keep accounts consistent and avoid revenue leakage.
To summarize:
If detention charges were paid with service tax, then the refund should be made inclusive of service tax.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Nursery business
- Tax on Amount transferred in HUF Account
- TDS on Dashcam rent and allied services
- GST REFUND ISSUE ON PURCHASE OF PLANT AND MACHINERY
- Condonation Request sec 119(2) b -Enhancement Limit of Leave Exemption prior to AY 2023
- Section 269ST applicability for capital introduced by partner to his partnership firm
- ETDS return q4 25-26
- Intimation under section 245
- HOW TO ADJUST CREDIT NOTE AMOUNT ?
- Import Order Cancelled.
- Working on Gold wastage during Melting of old gold jewellery
- WRONG GSTR7 ENTRIES ACCEPTED ERRONEOUSLY
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
