Excess service tax paid and adjusted next year

 

DEAR EXPERTS,
 
WE HAVE PAID EXCESS SERVICE TAX APPOX 500000/- AND ADJUSTED IN NEXT YEAR. IS IT RIGHT OR WRONG. IF WRONG WHAT WILL ITS CONSEQUENCES. PL. ADVICE AND TELL ANY NOTIFICATION.
 
THANKS 
Replies (4)

As per my knowledge you can adjust Service Tax to the extent of Rs. 200000 per quarter. 

Rule 6(4A) of Service Tax rules. Without limit, you can adjust , but only against the liability of next month/quarter.

Yes I agree with Nair sir's view, you should have intimated the department at the time of paying the excess amount of tax, Also after adjusting the same there has to be a communication form your end to the department. Since you have not made either of them the said adjustment made will be considered as ultra virus and both interest and penalty will be imposed on the same. Kindly deposit the said amount alongwith appropriate interest with an intimation to the department for the same to safeguard against yourself from penal provisions which can be as high as 200% of your tax liability.

Dear Experts,

we are service receiver and deposit service tax advance Rs.400000/- for  expenses which is pertain to last financial year like provision in march 2010 and paid april 2010 but we have not intimate the department for such advance. now the anti evasion department said you have to paid such advance,service tax  and interest their on till date. is it justify or any solution for that. pl advice.

Thanks

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