Service tax

5000.00

if there is no service provided.

Even provider paid ST on such amount, he will get refund on cencellation of bill for services.

I Agree with Sanket. You are eligible to get the full amount.

In the present case, Rule 6(3) of Service Tax Rules, 1994 will be applicable to the Service Provider, who in this case has not provided the service. Even if he has deposited the Service Tax with the Department, he can adjust the amount so paid in subsquent period if he refunds the full amount paid by you. Rule 6 (3) is produced below for reference:

"(3) Where an assessee has paid to the credit of Central Government service tax in respect of a taxable service, which is not so provided by him either wholly or partially for any reason, the assessee may adjust the excess service tax so paid by him (calculated on a pro rata basis) against his service tax liability for the subsequent period, if the assessee has refunded the value of taxable service and the service tax thereon to the person from whom it was received."