Cenvate of service tax on repair to machinery (urgent)

This query is : Resolved

Vipin Kumar Sharma (Querist)
Follow

04 December 2012 DEAR SIR

WE ARE PVT LTD CO.
1 ARE WE LIABLE TO PAY SERVICE TAX ON MAN POWER PROVIDED FOR MAINTAINANCE OF MACHINES

2 IF YES THAN WHAT IS RATE

3 CAN WE TAKE CENVATE OF DEPOSITING SERVICE TAX ON REPAIR TO MACHINERY

THANKS & REGARDS

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
Follow

04 December 2012 1. Yes you are required to pay service tax on supply of manpower if the service provider is an individual or HUF or firm.

2. You are liable for 75% of the tax liability, so the effective rate comes to 9.27%.

3. You can avail CENVAT credit on the basis of the challan.

@VaibhavJ

@VaibhavJ (Expert)
Follow

04 December 2012 Hi

If you are pvt ltd co. then you have to charge ST @12.36%.

Please refer link:
http://www.cbec.gov.in/ub1213/st15-2012.htm

Thanks//Vaibhav

Upgrade to CAclubindia Pro. Subscribe Now!