What is the procedure to claim service tax refund

This query is : Resolved 

10 January 2017

Dear Experts,

I am running a recruitment consulting firm registered under proprietorship.
In this industry clients generally delays the payment or some bills get cancelled if the candidate leaves within the replacement period i.e. 3 months to 6 months.
In that case how should I claim back my service tax amount paid against the said candidates bill.
Kindly advise..


10 January 2017


In such a situation you can adjust the excess amount paid in following months liability. Suppose you raise Invoice in the Month of January on which Service Tax payable was Rs. 10000 and you deposited the same in February before 6th. Now further if in March the Invoice got cancelled for any reason then the payment of Rs. 10000 will be treated as advance and can be adjusted in your further month Invoices.

Soma Halder (Querist)
10 January 2017

Thanks Sanket, actually my CA said that it's a long procedure to claim the refund from tax department by producing credit/ debit notes. And if the client has claimed the cenvat then we cannot get refund. Is it correct.

10 January 2017

Yes it is correct. Approaching every time to Service Tax Department is expensive and time consuming. Further if the Client has claimed CENVAT then refund can also not be granted. So its better to adjust the excess payment from future invoices. However you can apply once at end of the year for refund if the advance service tax paid figure is very high.

Soma Halder (Querist)
10 January 2017

Ok. But since there is no payment against that bill in my current account. So can I show that as a proof of cancelation and can i claim my tax refund. And what all documents I need to produce to claim that.

11 January 2017

You have to apply online by login to Service Tax Login Portal and following standard set of documents required for claiming the same.
1. Application in prescribed Form – R.
2. Copy of TR - 6/ GAR - 7/PLA/ copy of return evidencing payment of duty.
3. Copy of invoices (in original)
4. Documents evidencing that duty has not been passed on to the buyer.
5. Any other document in support of the refund claim.
6. Any other document as prescribed by the Central Excise Officer.

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