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.

Do we have to charge service tax on service contract. or not if yes
answer the following:

Service tax on
1. Handling & shifting of Iron Ore within the siding of the mines
2. Hire charges on time basis
3. Loading & Unloading charges.
4. Screening charges of Iron/Ore
etc

Please answer it. It's Urgent.

does Customisation of software as per the needs of customer falls under the Information Technology services and becomes taxable. If yes under what category.

What will be the period for claiming the refund. Is it starting from 17-09-07 or can we claim for the previous period also. I am not clear about this and the circular does not say any thing about it.

Please clarify.

thank you for your prompt reply, GUL. if i m not mistaken there is no service tax applicable on the OCEAN FREIGHT. pl recnfm.
the service tax is on the THC [terminal handling charges] and DOC charges which is charged by the line to him and same is collected from shpr and repaid to line .
he is not pocketing the service tax collected from the shpr. he is only collecting service tax and paying to the line.
also note he is not mentioning word 'SERVICE TAX' in the bill. so is it still not correct???
also note service tax is clubbed in the THC amount and DOC amount and billed to the shpr.
if he obtains the service tax no. then on wat element the service tax is applicable to him?? also adv under which a/c head this business is covered to be liable for service tax??

pl do adv urgently.

1) mr. a is forwarder. he gets quote from shipping line say, for muscat, adds his profit margin and quotes the same to the shpr. shpr in turn picks up that line's cntr and exports his goods to muscat.

is there any type of service tax applicable on the profit margin of mr. a?

2) mr. a has not taken service tax no. can he charge the same in the invoice to the shpr as he only collects the same from shpr and pays to the shipping line.
pl adv urgently.

A company into training and placement service wherein the total gross receipts is less than Rs. 50,000/- per annum had applied and got its service tax registration number in 2005. As they fall far below the limit, they failed to file nil returns since registration to date. In fact, they dont fall within the preview of this. They didnt even receive any notices from the department yet.

Now the Board of Directors had decided to wind up their business as they have contineous losses and are particular in surrendering/cancelling their company's service tax registration.

What is the procedure for cancellation?

What are the late penalty charges or fees for nil returns and cancellation charges?

How much time does it take to close this case?

Request for expert's guidance in this matter. Kindly give a brief steps for this purpose. Thanks.

What is rate of service tax on car rental ? is it 4.9%