Service tax collected from section 25 company

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Jagadishwaran Guruswamy

Managing Director

41 Points Posted on 16 June 2016

Dear Sirs & Madams,

We are a small Consultancy and Construction Company. One of our client is a Not for profit organization registered under Section 25 of the Indian Corporate Law.

In the Last financial year, we have provided some Real Estate Services to the said Not for Profit Company, collected Service Tax and deposited the amounts into the Government Treasury.

Now during their audit, the Auditors has raised an objection and our client wants us to return the service tax money which we have paid into the Government account.

Now ,my question is how do we get back the money from the government or adjust it against future Service Tax payments. What is the process?

I request you valuable advice in this regard.

Thank you very much.

Replies (3)

CA Anant Tyagi

258 Points Posted on 16 June 2016

Dear Sir,

As you have collect and paid the service tax in the accounts of government so there is no authority of yours to claim refund of service tax.

Since money paid to the government belongs to your client not yours. Doctrine of Unjust Enrichment shall be applicable here.

It is advisable that instruct your client to take registration under service tax as NON - ASSESSEE & claim the refund of service tax paid errorenously.

Mayur

Partner @ Mayur Thakkar & Co.

1944 Points Posted on 16 June 2016

According to my understanding service tax return already filed has to be revised first (you can revise your service tax return within 90 days). if you could revise the return than you can definitely get the refund or get it adjusted.