09 November 2009
Dear Friends, For the purpose of certifying the amount of service tax paid on goods exported (To claim refund of the same under notification no.17/2009)I am checking the payments made to the contractors.The co.has running accounts of all contractors.Against the bills raised during 1st quarter by contractors amounting to Rs.3 crores,the co.has paid Rs.2.5.crores on account.So,can the co.claim refund of total amount of service tax levied on services enjoyed by it in 1st quarter?or only the proportionate (2.5 crores/3 crores)refund can be claimed?
09 November 2009
Mr arpan u have to cheek the reason of part payment. may be as per customer order they r holding some Retention agst ur RA bill certification.Becoz u have not submitted PBG.or may be u had not completed work within stipulated time datzy they deducting LD in this case.
Becoz of these things u have not received ur full amount agst ur bill from customer. but after completing of all procedure u r going to receive all amount.
Service tax is due ,when u have received full or part amount agnst ur bill from customer.
10 November 2009
Dear Bishwajeet,thanks for your reply but co.is paying to the contractors on account.It's neither in the form of retention oney nor any services are left to be received.There is a gap between bills raised and amount paid because the co.doesn't pay to contractors on bill to bill basis but on account.
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