Rectification of Mistake under Service Tax

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Dear CA Club Members,

I request you to answer my query regarding Service Tax.

We have inadvertanly adjusted the Cenvat Credit available with Service tax payable under Import of Service.  Later the same was rectified by paying the Service Tax on Import of Service with Interest.  We also reversed the Input Adjustment earlier made against Service Imports payable  in the current Month and utilised the reversed Input Credit against the current Service Tax payable.  With respect to Cenvat credit available gainst the Import of Service for service tax paid, the same wouild be taken as Input when the Service amount is paid to Vendor.  Is the above treatment  correct. Since the above transaction are pertaining to June 08, the original return filed cannot be revised.

1) Now my question is wheather we have to inform the Superintendent about the mistake and requst his permission for availing the reversed Input( Originally adjusted against service tax payable for import of Service )

2) Since the reviced return cannot be filed ( time barred )can the same can be reflected in the II Half returns based on the payment and adjustment. 

3) Is there any procedure to followed for the above ajustment, then under what rule/section

Replies (2)

You are allowed to correct the mistake you have made, no need to intimate the department.

The amount os service tax paid, interest paid and taken recredit of service tax will be reflected in next return, no need to file revised return as these things has happened in this part of the yaer for which return has not been filed.

In my view, the steps taken by you is perfectly correct.

Ya, i agree 100% with Mr. Rajesh Kumar


CCI Pro

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