can anyone please clear this cocept

   If the assessee has paid excess service tax should that excess be refunded or can the

assessee adjust the excess against future liabilities.  If the assessee has paid excess amount as service tax than what is required to pay then such excess can be adjusted only if the excess is due to return of the service provided.

For Example: A has provided service to B.  A received Rs.40000 plus service tax from B.  The service tax so received by A is paid by him into the Government Account within the due date.  B returns a part of the service to A.  For the service returned in part A returns the money amounting to Rs.10000 plus service tax to B.  In this situation A will be entered into adjust the service tax on Rs.10000, which he returned to B as he already paid service tax on Rs.40000.

If there is a clerical mistake in calculation of service tax due to which excess payment is made or if the assessee makes an excess payment voluntarily he can adjust such excess in the next month or quarter as the case may be.  However he has to inform the Jurisdictional Superintendent in writing within 15 days from the date of such adjustment. please juz clear

Replies (1)

assesse can adjust excess service tax paid in government account against future tax at pro rata basis provided asssesse had return the service tax ammount to person whom he has recieved the amount for taxable serive . in all other cases he has to apply for refund of service tax by filling form R ie where amount of excess service tax paid is not adjusted against future tax liability .

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