St3 return of a builder

This query is : Resolved

Punit Agrawal (Querist)
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19 February 2014 In case of a builder, at the time of filing of ST3 return builder only filed return claiming service tax which was paid at the time of finalization of service tax case.
This service tax was related to land owners share which was calculated by department.
But at the time of filing ST3 builder only entered payment challan and no any liability to pay adjusted at that time.
this was ST3 for FY 2012-13,2nd Half year.
Now we came into notice that mistake, but no any revision of ST3 is possible.
Then what is possible to rectify this mistake.
Can we adjust this mistake in this half year FY 2013-14, 2HY.
Or any other solution is possible.
Project is completed in oct.13

CA Galib Mirza

CA Galib Mirza (Expert)
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19 February 2014 You can not adjust it now, the only option you have is to submit the details of documents of payment of tax dues along with calculation sheet to the Superintendent of Service Tax of relevant taxpayer.
And manually submit the return

Punit Agrawal

Punit Agrawal (Querist)
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19 February 2014 But we have already adjusted the payment of this ST amount and also submitted copy of challan to superintendent at the time of payment of challan & settlement of case.
Now this amount reflects in cenvat credit available.
So we want to adjust now this amount saying that this could not be adjusted that time by mistake and at the time of finalization of project we came into notice this mistake, so we want to adjust this amount now.
If we not adjust it now then in future more liability may arise on it on original sale of flat by land owner.

Punit Agrawal

Punit Agrawal (Querist)
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01 March 2014 What happened?? no replied received????

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)
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25 July 2025 Here’s a summary and possible way forward based on your situation with the builder’s ST3 return:

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### Situation Recap:

* Service tax related to landowner’s share was paid during the finalization of the case (for FY 2012-13, 2nd half).
* While filing ST-3 return, only the payment challan was reported, but no tax liability was adjusted in that period.
* Now, it’s noticed this was a mistake, but **revisions of ST-3 returns are not allowed**.
* The tax payment amount shows as available CENVAT credit in the records.
* You want to adjust/correct this mistake now (FY 2013-14, 2nd half) to avoid future issues or additional liabilities.

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### Possible Solutions:

1. **Manual Submission to Superintendent:**

* Submit a **detailed explanation letter** along with the supporting documents:

* Payment challan copy
* Calculation sheets showing how the tax liability was computed
* Explanation of the mistake and request to consider the adjustment in the current/future returns

* This is typically done by approaching the **Jurisdictional Superintendent of Service Tax** for manual rectification.

2. **Adjust in Current/Future ST-3 Returns:**

* Though you cannot revise the old return, you may adjust the tax liability in the current or subsequent ST-3 returns by:

* Declaring the previously unpaid tax liability as a **past period adjustment**.
* Adjusting the CENVAT credit accordingly to ensure no double credit is availed.

* **Make a clear note in the return and maintain proper documentation** supporting this adjustment.

3. **Maintain Proper Records for Audit:**

* Since the amount is already reflected as CENVAT credit, be careful not to use this credit twice.
* Keep all correspondence, challans, and calculations handy in case of future audits or notices.

4. **Consult with Department or a Tax Expert:**

* Sometimes, such cases require prior approval or guidance from the department.
* You may also seek expert help to draft a formal representation or for any other specific procedural requirements.

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### Important:

* Since the project completed in Oct 2013, it’s critical to **resolve this soon** to avoid penalty or interest.
* It’s better to proactively approach the department rather than wait for a notice.

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If you want, I can help draft a formal letter to the Superintendent explaining the situation and requesting adjustment. Would you like me to prepare that?

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