Service Tax Set-off and Refund

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This query is : Resolved

Hemal Parikh (Querist)

01 July 2008 Hello,

1. Service Tax Paid on commission. Whether we can take credit for service tax paid on telephone, professional fees. But this payment we cannot bifurgate whether this is related to the commission service or it is for the different service. Because they also have other purchase and sales business. Please advice on the same.

2. Whenver we had paid and higher amount in respect of service tax before taking any exemption limit upto 8 lakh. Amount collected from debtors is all inclusive of service tax. So whether we can claim a refund upto 8 lakh. If yes, whether we should file a revised return and ask for a refund. Please advice.

Sanjeev Kumar

Sanjeev Kumar (Expert)

02 July 2008 1. these type of exps. on which you are paying service tax are not 100% for taxable service(s), so should have to make a calculation on pro-data basis,

2. in this case refund is not allowable. as indirect taxes is concern you are part and partial a revenue officer, who collect the tax on behalf of revenue, once you collect the tax, your liability to deposited the same. if going to refund you should have to prove amount return to concerned person, (its not eassy to prove before Auth.)

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