Service tax Refund

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Rajesh G Shah

Chartered Accountant

27 Points Posted on 14 May 2010

hi! my client has provided total taxable service of Rs.13,85,217/-. in F.Y.2008-09 Since its service not exceeds Rs.10,00,000/- in F.Y.2007-08 Therefore he has paid Service tax on Rs.3,85,217/- @ 12.36%. However he paid Amount in excess by Rs.1,42,708/- Can I Claim Refund for the same.

What will be my service tax liability for the F.Y.2009-10 AND also for the F.Y.2010-11 till the date. whether it is advisable for me to Surrender Service Tax Registration as chances of taxable service going beyond 10 lacks is negligible.

My email id is rajesh.fca @ hotmail.com

Pl. ADVICE.

Replies (3)

CA Manikandan Raghunath

470 Points Posted on 15 May 2010

Dear Sir,

As far as i know, i'm posting here..

Service tax paid in excess can be adjusted,

a) in the succeeding month or quarter and

b) details and reasons for such adjustment need to be intimated to the jurisdictional superintent of Central excise within 15 days from the date of such adjustment.

Hence refund is not possible..

Also, the threshold limit of Rs.10 lacs applies only for the first year and for the subsequent years, service tax shall be payable on the value of taxable services provide..

So, your client is liable to pay service tax on the value of taxable service provided for the FYs 2009-10 and 2010-11..