Service tax paid more inadvertently

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manoj sonalkar (Querist)
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06 January 2015 Hi

If anybody pays service tax under reverse charge more than the actual liability , can he use the excess amount paid for next months' liability or he has to claim refund for the same.

Is there any notification for this & any form / format to be submitted to department.

CA Kumar Mukesh

CA Kumar Mukesh (Expert)
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07 January 2015 Rule 6(4) of Service Tax Rules 1994, State that
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 y him against his service tax liability for the succeeding month or quarter, as the case may be.

Therefore, you can adjust such excess payment against liability of succeeding month or quarter Service tax liability.

Further, no form is specified for this purpose therefore, book adjustment entry would be sufficient.

manoj sonalkar

manoj sonalkar (Querist)
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07 January 2015 Thanks

Can it be adjusted for more than one succeeding months.

CA Kumar Mukesh

CA Kumar Mukesh (Expert)
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08 January 2015 Same Challan No can be used to refer more than one Month/Quarter service tax payment in service tax return.

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