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Service tax on royalty

Queries 908 views 2 replies

Ram kr.

Buisness

883 Points Joined November 2008

DEAR EXPERTS,

WE HAVE PAID SERVICE TAX ON ROYALTY THROUGH CENVAT CREDIT BUT ACCORDING TO REVERSE CHARGE MACHENISM WE CAN PAY SERVICE TAX ON ROYALTY THROUGH CASH ONLY. NOW SERVICE TAX DEPARTMENT RAISE A DEMAND THAT TO DEPOSIT ALL SERVICE TAX IN CASH ALONGWITH INTEREST ONLY. CAN ANY ONE SUGEST ME TO COME OUT THIS PROBLEM WITHOUT ANY INTEREST. ULTIMATELY WE HAD PAID SERVICE TAX THROUGH CENVAT CREDIT.

THANKS

Replies (2)

Guest

Dear Sir,

You cannot escape from the cash payment of service tax along with interest. But can utilise the cenvat credit for different transaction by making revised S.T -3 return. For revision of return you will have 90 days time from the original return date.

Regards

Anand.

Ram kr.

Buisness

883 Points Joined November 2008

Its no question to submit revised st-3 return because recovery is from 2007. My question is i have paid service tax through cenvat credit whether its is cenvat or cash. So why i do pay interest on service tax, Yes i am ready to pay service tax in cash but why interest.