CA
1135 Points
Joined January 2010
I believe there is a miscommunication Madhukarji. As far as I understand, he is saying that he has already paid Service tax under another head, wrongly. Now, he wants that excess payment to be adjusted against the Service tax liability arising under another head. Hence, the question of taking credit does not arise.
Thus, such excess payment should be allowed to be adjusted, provided you make an intimation to the Department. There is a circular as well in this respect.