Dear all
A private limited company paid Rs. 45000 as service tax whereas actual liability is of Rs.48000 in the month of November.
Then in december they have credit of Rs.30000.
can they setoff that 3000i.e.(48000-45000) in the month of december??
Dear all
A private limited company paid Rs. 45000 as service tax whereas actual liability is of Rs.48000 in the month of November.
Then in december they have credit of Rs.30000.
can they setoff that 3000i.e.(48000-45000) in the month of december??
No they cannot set-off. The liability arose earlier in the month of November, but the credit developed in December. One cannot set-off credit in a back date. Hence, not adjustible since Company has to make payments on a monthly basis.
It has to be paid by cash/on line payment. cenvat credit can be adjusted for dec output tax. The late payment of rs.3000 attracts interest @ 18% also, which please note.
rengaraj r.k
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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Naveen Fintech Pvt Ltd
Kolkata
CA Inter
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