excess service tax /advance service tax paid, Service Tax

[sunil mehta]

A service provider ( partnership firm ) has paid excess service tax of Rs.120000/- for the quarter ending Oct'10 .The said amt.was paid last month in April,2011.The excess amount was paid due to wrong liability calculation for Oct'10 to Dec'10 Quarter by the accountant .The same amount has been adjusted and balance ser.tax was paid on 7/05/2011 ,for Quarter ending Jan'11 to Mar'11 .. Rule 6(4B) of service tax Rules,1994 ,says that..."such adjustment shall be intimated to the jurisictional suptd. within 15 days from the date of such adjustment ..

." Query:- 1)Since ser.tax for qtr ending Jan'11 to Mar'11 was paid on 07/05/2011 and excess ser.tax of Rs.1.20 lacs was paid shorter by way of adjustment from which date 15 days will be reckoned for intimation purpose ? --15 days from 07/05/2011 or from 31/03/2011 (i.e last date of Jan-to mar' 11 qtr. )

Query:-2)Since excess tax  paid is rs. 1.20 lacs but rule 6(4B)(iii) allows only Rs.1.00 lac (now Rs.2.00 lac w.e.f. 01/04/2011) ,whether suptd. can deny credit of rs.1.20 lacs paid as it exceeds limit of rs. 1.00 lac ?(old limit upto 31/03/2011 )(new limit rs.2 lacs w.e.f.01/04/2011)

Query 3:-Whether above case falls under rule 6(4B)(iii) i.e.excess service tax paid

Posts / Replies

[CA Rachit Agarwal]

1. Adjustement will be reckoned from the date of adjustment hence in your case it would be 07.05.2011.

2. Since adjustment is taking place in the current year, hence the prevalant rules would apply. Revised Limit would be applicable.

3. The rule is applicable as the amount is though PLA.