Demand of service tax already deposited, Service Tax

[Dharmender Rathore]

I am running security services and providing security services to one of PSU, and IAcharged services tax but PSU deduct it at their end and deposited in desired bank, and issued certificate of deposited, now service tax department demand us for depositing service tax which PSU has already been deposited, wheather it is genuine to pay double tax

Posts / Replies

[Madhukar N Hiregange]

The procedure followed is not correct. However the Tribunal may appreciate the argument that the tax has been paid albeit following the incorrect procedure. I remember some judgement ( recent ) in this reagrd which may come to your rescue.

[Surender Gupta]

In service tax there is no such provision (barring few exception) that a service receiver at his discretion pay service tax on behalf of service provider. However if such PSU has deposited service tax on TR-6 Challan mentioning the particulars of yours, you may find easy to get relief.