Service tax on payments wrongly credited

Hello Experts,

 

I have 2 sister concern companies which were de-merged on 01.04.2012.

Now one of our clients has wrongly deposited the amount due on a bill in the account of our sister concern.

Will there be any service tax implication if i merely transfer the amount to our sister concern rather tham refunding it back to the party and then my sister concern claiming it back from the builder???

I personally feel that there shouldnt be any issue... however, my sister concern accountant stresses that there would be...

Request your help

 

Regards,

Anitha Serrao

Replies (1)

There is nothing wrong in transfering money wrongly received.

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