Excess Collection of Service Tax:

Any amount collected by a person as service tax from any other person, even if it was not permissible in terms of the service tax law, is required to be deposited with the Central Government. In other words, no amount collected as service tax shall be retained by the person who has collected such amount. Any delay in depositing such amount attracts simple interest at the rate prescribed under section 73 B of the Act. At present, the rate of interest is 13% per annum (notification No. 8/2006-ST, dated 19.4.2006)

In case collected in excess, Service Tax should be immediately deposited
(Section 73A(1)&(2), Finance Act 1994)