Can any adjustment of tax liability be made by the assessee on his own in cases where Service Tax has been paid in excess?
Ans. Yes, Facility for adjusting excess payment of service tax by the assessee towards future liability is now provided for in the law. In cases, where an assessee has paid to the credit of Central Govt. service tax in respect of a taxable service which is not so provided by him either wholly or partially for any reason, the assessee may adjust the excess service tax so paid by him calculated on a prorata basis against his service tax liability for the subsequent period, provided that the assessee has refund the value of taxable service and the service tax thereon to the person from whom it was received. However, the assessee is required to file the details in respect of such suo-moto adjustments done by him at the time of filing the service tax returns. In other cases of excess payment, the refund claim have to be filed with the department.
Related Questions
- Is the Service Tax payable by the assessee even in cases where his clients do not pay for the service rendered or pay only a part of the bill raised in this regard?
- Can any adjustment of tax liability be made by the assessee on his own in cases where Service Tax has been paid in excess?
- Can any adjustment of tax liability be made by an assessee on his own in cases where Service Tax has been paid in excess?
