You can definitely adjust your service tax liability with Advance service tax paid.
Another option is to carry forward the amount, if it cant be utilized in the current period.
For any other query, you can contact us at:
Advance Payment of Service Tax
Being a service provider of various services and with out knowing the taxability of a particular service we have paid service tax on the service which is not taxable along with the interest for the FY 2014-15. Now i got to know that the service tax paid is on not taxable service, in this regard i would like to know whether am i eligible for adjustment of such service tax paid along with interest as advance tax paid for the CY 2015-16. Kindly provide us the suggestion also if there is any other way to utilize the excess paid tax. Kindly provide us the procedure to be followed for the same if any.
Asked 9 years ago in Service Tax
Sir but my worry is about the interest paid on such service tax whether that can be(Interest Portion Paid) adjusted as Service tax paid in advance or not. Will service tax department accept the interest paid, as advance tax for the CY or not. Thanking you sir
Asked 9 years ago
You can not adjust service tax paid against your income tax payment.
However, you can revise the previous year returns and show the payment made as excess of liability and the same can be adjusted against the current year service tax liability.
Regards
Ankit Jain
Sir but my worry is about the interest paid on such service tax whether that can be(Interest Portion Paid) adjusted as Service tax paid in advance or not. Will service tax department accept the interest paid, as advance tax for the CY or not. Thanking you sir
Asked 9 years ago
Yes, it should be because you made additional interest which was not due.
Regards
Ankit Jain
Please refer to Sub-rules (4A) and (4B) of rule 6 of the Service Tax Rules, 1994
For Interest portion, it is advised to take prior approval from service tax department & only after that, you should adjust it with service tax liability.
Interest portion can not be allowed to adjust because that payment is made as default on your part and not a normal tax payments. however is big than we can fight out case on the base of unjust enrichment and can try to get refund of the same.
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