30 March 2009
Some of the invoices issued by the service providers, don't show the Service Tax payable seperately. Instead it is mentioned in the invoice that "the above charges are inclusive of Service Tax @ 10.3%."
The department is denying cenvat credit on such document, as the invoice should contain the Service Tax payable seperately as per rule 4A of STR,1994.
My query is whether the word "The service charges are inclusive of Service Tax" is enough to avail the Cenvat Credit. Please clarify my doubt with relevant provision.
But as per Section 67(2)of Finance Act, 1994, the cum-tax value may be acceptable. The same is reproduced below for your ready reference.
I request you to check the below provision, whether it supports my contention.
"Where the gross amount charged by a service provider, for the service provided or to be provided is inclusive of service tax payable, the value of such taxable service shall be such amount as, with the addition of tax payable, is equal to the gross amount charged"
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