Urgent- input adjustment

This query is : Resolved

ABDUL VAJEED (Querist)
Follow

13 January 2012 Hi All

One of my clients did not file thier return ST-3 , for 2010-11 Fy .
Its a P ltd.
For every month they had 1500 or 2000 laibility But in Mar -11 they have input credit 100000/- ,
If we take whole year they have exess input of ser tax,
Now i am filing their late return.
can i adjust the liability with exess credit or i have to pay all the laib raised .and carry forward the input

Abdul

ABHISEK TOSNIWAL

ABHISEK TOSNIWAL (Expert)
Follow

13 January 2012 Dear Abdul,

Penalty should be paid in cash, it cannot be adjusted with input credit .
So pay the penalty and carry forward the input credit.

Regards

Suresh Ramaswamy

Suresh Ramaswamy (Expert)
Follow

13 January 2012 Dear Abdul,

Service Tax liability can only be adjusted against the input available in the relevant month.In your case till March 2011 no input was availed. Hence you have to remit the service tax due along with interest @ 18% p.a. till February 2011. The tax for March 2011 can be adjusted against the input availed and the balance can be carried forward for future adjustment.

ABDUL VAJEED

ABDUL VAJEED (Querist)
Follow

16 January 2012 Should i take 13% or 18% interest ?

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now