Service tax on signing fees

This query is : Resolved

Mayuri (Querist)
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03 June 2013 Whether service tax is applicable on signing fees recd. from the customer(Debtors). Whether we had to pay a service tax or utilised the credit of the service tax levied on the signing fees.

CA Vikas Acharya

CA Vikas Acharya (Expert)
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03 June 2013 service tax is now on all the consideration received for any activity except it is exempted or in negative list.

the above is neither in negative list nor exempted hence service tax will be leviable.

service tax will be collected in addition to fee charged @ 12.36%, credit of this tax can be taken by the service recipient of the same.

while depositing this service tax u can claim cenvat credit if any available with you.