service
25 Points
Joined December 2008
Good evening All,
I have a query for R & d cess. We pays royalty to our parent company (Japan), on which we paid 7 % service tax & cess on 12% to service tax dept 5 % R & D cess pays to RBI.
but from 2012 to 2015 three time we were late to deposit R & D cess before the payment of royalty.
As per Notification no 14/2012 service tax , it has been provided that the exemption shall be available only if the R & D cess is paid at the time or before the payment of service.
now service tax officer is demanding the 5% R & D cess with interest which were already being deposited to RBI after payment of royalty.
My query is that we have already paid R & D cess to RBI , only interest should be payable now to service tax department . But being a different department, service tax department is demanding
late deposited R & D cess with interest, they says you can refund that money from RBI.
Should we pay Late R & D cess to service tax department with interest again?? Can we take credit of this tax paid as we have already taken credit of 7 % ??
If we donโt avail the exemption of 14/2012, and pays all 12 % tax to service tax department in future, will there be any obligation from RBI ??
What will be refund process from RBI
Thanks & regards
Manoj