Applicability of service
This query is : Open
31 July 2013
M/S XYZ Pvt. Ltd. is a manufacturer of dry flowers and this company has all export sales, it engages a transport company who takes all the finished goods from its factory and delivers the goods directly at port from where the goods are exported outside India.
M/S XYZ Pvt. Ltd. is an exporter all the finished goods are exported out of India.
In this regard I want to know whether service tax will be levied on M/S XYZ Pvt. Ltd. as a service receiver accoring to notification no. 26/2012 under the category of " Goods Transport Agency ".
M/S XYZ Pvt. Ltd. is an exporter all the finished goods are exported out of India.
In this regard I want to know whether service tax will be levied on M/S XYZ Pvt. Ltd. as a service receiver accoring to notification no. 26/2012 under the category of " Goods Transport Agency ".
31 July 2013
Yes, Service Tax is payable. The amount of tax is to be calculated after taking the benefit of abatement under notification 26/2012(Provided CENVAT is not claimed). You are eligible for refund of service tax at actual or 0.18% of FOB value of export as may be opted by you
01 August 2013
Dear Ravi
I have slightly different opinion on the above for the following reason
1) I understand from above facts that xyz is the service receiver
2) Service receiver is engaged in export of goods. and is not providing the service of goods transport agency.
3)Hence Notification No: 26/2012 is applicable for service provided by goods transport agency.
4) Hence in this case the above notification may not apply
5) However since XYZ is service receiver, Notification No: 30/2012, that is reverse charge mechanism would apply being a body corporate.
I have slightly different opinion on the above for the following reason
1) I understand from above facts that xyz is the service receiver
2) Service receiver is engaged in export of goods. and is not providing the service of goods transport agency.
3)Hence Notification No: 26/2012 is applicable for service provided by goods transport agency.
4) Hence in this case the above notification may not apply
5) However since XYZ is service receiver, Notification No: 30/2012, that is reverse charge mechanism would apply being a body corporate.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Applicability
- Is Aadhar PAN linking required for opening bank account?
- Where to show the RCM on Rent paid to unregistered landlord
- CPC Processing IT Return for AY 2023-24 without recognizing the Taxation Option under New Regime
- Gst Sales of FY 2023-24
- RCM - commercial rent paid to URP under GST
- Whether still royalty
- TDS NUMBER SURRENDER
- Legal heir raised refund , but refund issued to the closed account of deceased.
- Offsetting interest income against derivative trading losses
- My Last working day in current org is in novemebr 2024 but they are asking me to submit IT proof
- Indexation benefit applicability
- SEC 54 OF IT ACT
- Passed group 2 exams under wrong gender
- REQUIREMENT OF 15CB
- QUERY FOR RCM ON RENT
- APPEAL-CIT
- Payable outstanding for years disallowance
- Issue of gst e invoice
- Interchangeable words in accounts
Trending Online Classes
-
Excel Mastery Program
CA Rishabh Pugalia
CAclubindia
