Difference between these two rules of service tax

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Shivashish

Chartered Accountant

2181 Points Posted on 03 November 2012

I was searching for this query and came across that someone has already posted the query but was unresolved.

Kindly solve this query so that i can proceed towards filling ST-3. THANKS

Dear All,

I would appreciate the views of the learned members on the differences

between the two rules:

RULE 6(1A)

"Without prejudice to the provisions contained in sub-rule (1), every person liable to pay

service tax, may, on his own volition, pay an amount as service tax in advance, to the credit

of the Central Government and adjust the amount so paid against the service tax which he is

liable to pay for the subsequent period"

RULE 6(4A)

"Notwithstanding anything contained in sub-rule (4), where an assessee has paid to the credit of

Central Government any amount in excess of the amount required to be paid towards service tax

liability for a month or quarter, as the case may be, the assessee may adjust such excess amount paid

by him against his service tax liability for the succeeding month or quarter, as the case may be."

Replies (4)

CA Venkatprasad Pasupuleti

2458 Points Posted on 03 November 2012

Dear Shivashih,

The first case [Rule 6(1A)] is deals with adjustment of service tax paid in advance,

and second one[Rule 6(4A)] is adjustment of excess service tax paid.

Shivashish

Chartered Accountant

2181 Points Posted on 03 November 2012

Dear Venkata, Thanks for the reply can you put a brief example?????

CA Venkatprasad Pasupuleti

2458 Points Posted on 03 November 2012

If you paid tax before the liability comes, then adjustment has to be made against the future liability under Rule 6(1A).

if you paid tax in excess of your actual liability, then adjustment has to be made against the future liability under Rule 6(4A).

Shivashish

Chartered Accountant

2181 Points Posted on 05 November 2012

Originally posted by : Venkata Prasad Pasupuleti
	If you paid tax before the liability comes, then adjustment has to be made against the future liability under Rule 6(1A). if you paid tax in excess of your actual liability, then adjustment has to be made against the future liability under Rule 6(4A).

Ok the first one uses in case where there is nil service tax liablity and second one is used in case when there is some liability and you have paid in excess.

Thanks