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Excess service tax challan payment

Harinder (student) (219 Points)

03 October 2011

If I have paid service tax in excess of the services billed during the first six months, do I need to show the full amount of tax challans paid in my RETURN for first six month. If so, it will obiviously show excess challan payments. correct me if I'm wrong.

Is it possible to apply above mentioned setoff while filing my second six month RETURN and what will be the precuations that I need to take care off. Thanks in advance.

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7 Replies

V Chandrasekaran (Chartered Accountant) (256 Points)
Replied 03 October 2011

Show entire challan amount in ST return and the excess will be carried forward automatically.

ARUN KUMAR (Financial Consultant ) (992 Points)
Replied 03 October 2011

Originally posted by : V Chandrasekaran
	Show entire challan amount in ST return and the excess will be carried forward automatically.

AGREE THIS........................

Nirav Worah (CHARTERED ACCOUNTANT) (396 Points)
Replied 03 October 2011

Excess service tax paid can be adjusted in subsequent month/quarter under Rule 6(4A) of service tax rules. The maximum limit of such adjustment is Rs 2 Lakhs. Such adjustment will be allowed provided that the reasons for such adjustment shall be provided to superintendent within 15 days of such adjustment.

SANISH.KS (ACCOUNTS EXECUTIVE) (158 Points)
Replied 03 October 2011

thanks for sharing

Ravi Shankar Goel & Co. (Profession) (39 Points)
Replied 24 February 2012

is its necesserary to intimeate supritendent for excess payment and if what is the procedure to intimate.

Nirav Worah (CHARTERED ACCOUNTANT) (396 Points)
Replied 24 February 2012

Originally posted by : Ravi Shankar
	is its necesserary to intimeate supritendent for excess payment and if what is the procedure to intimate.

Yes, it is necessary to intimate to the department about excess payment otherwise department may not allow such adjustment. And you may have to apply for refund of such excess amount paid. Moreover, claim for refund is to be filed within one year.

Just sent a letter stating reasons for excess payment made. After making adjustment of excess amount paid you need to inform the department about such adjustment made.