Service tax received later services exempted

 

 

An Management institute was providing educational services and charging service tax, later the Institute got affiliated with Mewar University ( A Deemed university) and now the services are Exempt. Now all courses are exempted from service tax. The problem is that Institute has already collected Registration Fees and 1st Installment fees for the course along with Service Tax but the tax was not deposited with Department. Can institute reverse the service tax amount and credit to Fees a/c, by adjusting the same with future Installments ?  Please advice on the above matter.

Thanks in Advance !

Replies (2)

As a general rule, The exemptions are always prospective and not retrospective unless specifically provided in the exemption notification, so here ST collected on first installment cannot be claimed as refund.

 

I request your attention to section 73A(1) & (2) of Finance Act 1994. Any service tax collected should be deposited to Government forthwith.

Regards,

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