Service Tax related help, Service Tax

[rahul kumar]

Dear All,

Service Tax amount of Rent on Premises which was remitted to landlord service tax account but we remitted the total amount (rent on premises+ our service tax) in our service account. We also take cenvat credit on that amount which we donot pay to landlord. Now please how to resolve the issue so that we can gave that amount back to them and also our account correct.

Hope you will all help.

Regards

your friend.

Posts / Replies

[Rajagopalan Ranganathan]

Sir,

You apply for refund of rent amount deposited to Government account. and then pay the same to land lord. since rent amount is not service tax and only a mere deposit the limitation prescribed under Section 11 B of Central Excise Act, 1944 as made applicable to Finance Act, 1994 under Section 83 of Finance Act, 1994 is not applicable to such refunds. There is no unjust enrichment also.

[Mahir S]

Sir,

If you want to go for Refund, then first you shall have to reverse the amount of credit availed in your Cenvat/PLA account ; for the rent amount not been paid to landlord.

[KASTURI SETHI]

Rahul Kumar Ji,

You have mentioned, "We also take credit on that amount which we do not pay to landlord." You are required to reverse the credit along with interest. If you have utilized that and you have no balance of cenvat credit, u are required to deposit cash in Govt. account in lieu of credit taken which was not due to you.

[Ganeshan Kalyani]

It is advisable to do reconciliation of expense GL before making payment of service tax. It does not cost for reconciliation but to reverse and pay interest. this will help you in upcoming service tax detailed manual scrutiny proposed by the department.

[KASTURI SETHI]

Rightly advised by Sh.Ganeshan Kalyani Ji. Reconciliation will solve the problem for ever.