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Is service tax excess paid refundable?

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Lalit Sangani

M.Com. Asst. Manager Account

422 Points Posted on 01 October 2012

Dear All,

For the financial year 2011-12, I had excess paid service tax around 27000/-, can I claim for refund amount, if this is possible then what is the process of refund ?

whether above is not possible then can I Utilise excess amount for Finacial year 2012-13.

Replies (2)

Lalit Sangani

M.Com. Asst. Manager Account

422 Points Posted on 03 October 2012

No reply by any one, please reply this is urgent.

As per rule sub-rule 4A to Rule 6 of Service Tax Rules, 1994 you can adjust the excess amount paid against the service tax liability of succeeding month or quarter, as the case may be. But you can adjust only if you fulfil the conditions mentioned in Sub-rule 4B. (For the same kindly refer Service Tax Rules, 1994)

The Service Tax Refund claims have to be made in accordance with Section 11B of the Central Excise Act 1944 which have also been made applicable to service tax vide section 83 of the Act. Process of the same is:-

The Application shall be filed in the prescribed format
The Application shall be filed before the expiry of the limitation period of 1 year from the date of payment of Tax
The Application for Refund shall be accompanied by a documentary evidence that the Excess Service Tax paid has actually been borne by the Service Provider himself and has not been passed on to any other person (Doctrine of Unjust Enrichment)