We have received from Central Excise Department to pay Service tax for the foreign agency commission since 09.07.2004. Is there any exemption, concession for Exporters on that count? Please clarify urgently.

Is retrading or rebuttoning of tyres not on franchise taxable? If yes pls let me know under which category of service it is taxable.

When the exemption limit of 8lakhs is crossed is service tax payable on entire services rendered or only that part which exceeds 8 lakhs?

Query regarding; Can service tax credit is available on proportionate basis, If unit manufacturing excisable as well as exampted products? i explaine query by way of illustration.

We are manufacturing of dutiable and exempted products, we are availing a service of labour contractor, which is used in the manufacture of final products. Labour contractor monthly basis charged the bill with service tax for Rs.112360/- (100000 + 12360 service tax).

Now question of taking a service tax credit for the above Invoice.

For taking service tax credit, we have apply the proportionate credit method like …

We have collect the production data from our production department, like dutiable production qty 1,00,000 nos and Excisable production qty 50,000 nos, so the total nos of production is 1,50,000 nos (1,00,000+50, 000).


We are applied proportionate formula like


50,000 (Excisable production) * 12360 (Service tax credit)
-------------------------------------------
1,50,000 (Total production)

=4120 eligible service tax credit


1) IS IT CORRECT WAY TO TAKE THE SERVICE TAX CREDIT?

2) Can you provide me any Judgment to established that service tax credit cannot be taken on proportionate basis?

Note: As per my view in CC rule there is no restriction to take proportionate service tax credit, If you have, please provide me.

Please give expert views.

Regards
Vijay Chitte
Executive Taxation

In case a servive provider crosses the exemption limit provided to small scale providers for the first time. He has to pay tax only on that amount which exceeds Rs. 800000.But if in the next F.Y his gross receipts fall down the said exemption limit then what will be the taxability of the services provided by him.

Dear Sir / Ma'am,
I have a query regarding Notification No.32/2007 effective from 01.06.07 issued by service tax department. I work in a construction company where before the issuance of the said notification we have paid service tax under Commercial & Industrial Construction ,Erection, Commissioning or Installation Services . I would like to know whether we can opt for payment of service tax under composition scheme of Works Contract Service provided in the said notification in respect of the job started before 01.06.07 for the said contracts.

Most of Tour & Travles Operator Charged service Tax @ 4.9% . Can they charged Service Tax at lower rate?

What is the difference between Service Tax & Service Charges

Can be service Tax Charged at Lower Rate?

A firm is authorised service centre of LG AC. It provide repair and maintenance to all those customer which have purchased AC and falls under guarantee period, on behalf of the company. It receive certain fixed monthly ckarges from the company for this. It also do its on repair and maintenance work of all AC which is not under guarantee period or otherwise. It got registered with service tax department last year and paid service tax though its toal receipt was much less than Rs 4 lac. This year the firm did not pay any service tax nor it collected from the LG Company nor from custormer in the impression that the limit has been increased to Rs 8 lac and it is entitled for the basic exemption limit. Now when it submitted a letter of surrender of its registration with service tax department, they informed that this firm is not entitled for basic exemption due to some circular i.e. the Authorised Service Centre are not entitled for basic exemption. Please clarify the correct legal position with circular if any.

R K Dhandia

If a chartered accountant in (J&K) provides any taxable service outside the state of Jammu & Kashmir. Will that service be taxable? Since the service tax is destination based, According to me that service will be taxable. But can he claim exemption provided to small service providers i;e Rs 800000/- If yes then how will we calculate his gross receipts.