R.Ganesan (Lect.) 02 May 2011

Can a service receipient claim refund?

Dear Sir,

A builder I engaged has wrongly paid service tax in respect of service 'construction of residential complex'.

I have come across various Commissioner (Appeals) and CETSAT rulings that service tax is not leviable for this service.

Is there any way I can claim refund of service tax? I am not a service tax assesse. My builder refuses to file service tax refund claim.

KINDLY QUOTE EXTRACTS OF SERVICE TAX RULES/JUDGEMENTS IN RESPECT OF YOUR CONCLUSION.

Thanks in advance for your replies,

Yours sincerely,
R. GANESAN.

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2 Replies

vikash jaiswal (Finance Officer ) 04 May 2011

Dear Sir,

As per the provisions of the Service tax, no refund can be claimed by the Serivce receipient, in case service tax wrongly charged by the service provider. Moreover, this is advisable to check with your the service provider that whether he have deposited the service tax collected from you with the department. if not then you should ask the service provider to repay the amount of service tax to you.

Mr Anil Sood (Proprietor) 18 May 2011

Yes the recipient of service can claim refund of service tax paid that has been wrongly collected from him. The words used are'any person who has borne the incidence of tax'. Law does not preclude any individual from claiming refund of provided he or she proves to have paid the service tax to the service provider,