Clarification - payment of tax to department without receiving, Service Tax

[govinda raju velugula]

one of client paid service tax with availing threshold exemption limit of Rs.10,00,000/- during the current financial year 2009-10. whether same has been adjusted in the future tax liability? The the service tax was paid to deptt. without claiming from service receiver Please clarify the if there is any steps to adjust in future payments.

Posts / Replies

[mukesh agrawal]

You have availed the exemption and paid tax on account of onward turnover. So where is error in payment of tax.

[ASHWIN GALA]

You can raise debit notes to the receiver for the service tax paid but not collected. Any amount received towards this debit notes will be adjusted against the amount paid by you.