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Point of taxation and st 3

Queries 731 views 1 replies

Mrunal

Professional consultant

122 Points Joined May 2008

POT were applicable since july, now my case is, the services billed after july were considered for calculating ST payable. But when their payment were received in (say) for july bill payment recd in jan 2012. Now this receipt was again by mistake considered for ST payable in jan as it was considered for the services provided before july. Ultimately tax has now been paid twice for same service. Can anyone suggest any remedy in this situation? How the set off can be claimed for excess ST? N how to show it in ST return? Reply at earlist.

Replies (1)

CA Ganesh Karthik

Chartered Accountant

368 Points Joined July 2008

Pls refer rule 6(4B) of the Service Tax rules, 1994: where an assessee has paid to the credit of CG any amount in excess of the amount reqired to be paid towards service tax liability for a month or quarter, as the case may be, he may adjust such excess amount for the succeeding month or quarter, subject to the following conditions:

excess amount should not be because of interpretation of law, taxability, classification, valuation or applicability of any exemption notification.
the monetary limit for adjustment is Rs. 2,00,000/-
The details and reasons for adjustment have to be intimated to the jurisdictionalSuperintendent of Central Excise within 15 days from the date of adjustment.

In your case, it is merely a clerical error, hence you can adjust the same against your succeeding month's liability.

Post budget 2012, the monetary limit has been removed, as well as the requirement to intimate the SCE also has been removed.

Hope your doubt is clarified..