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Service tax paid on behalf of another

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This query is : Resolved

krupa (Querist)
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20 May 2013 A co. is the owner of the property and has been giving property on rental basis. Later on, A co. sold the property to B co.
However the rental receipts in respect of such property continued to be received in the name of A co. A co then issued credit note in respect of such rental income to B co.
A co. had paid service tax in respect of such rental income. However notice was issued to B co by Service department concerning default in payment of service tax.
However in reality service tax have been paid by A co. on behalf of B co mistakenly.
What are the steps we can take legally in respect of this matter?
can B co. get the credit of service tax paid by A co?

CA Kapil Verma

CA Kapil Verma (Expert)
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20 May 2013 B co. is defaulter in this case, now B co. need to pay the service tax amount with interest and penalty.

a co can take credit of service tax paid.

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