Sangeeta (Accounts) (30 Points)
23 April 2010Dear All,
I am a new user to this Forum. I have a query regarding Service Tax. Hope for quick replies...
1. Is it mandatory to pay Service Tax, if any starting firm has Service Tax Registration, or it is dependent on Turnover of the Company?
2. Service Tax return once Filed, is it claimable? If so under what condition & after what duration company can claim the Amount?
Thanks,
Sangeeta
Kolkata
vishnupriya
(CA Final)
(1418 Points)
Replied 24 April 2010
Hi
So far there are only 109 services (upto AY 2010-11) which are taxable under the purview of levy of service tax.
Please check your service is in the list or not by pasting the below link in your browser
https://www.servicetaxindia.com/indexmain.asp
Question:2-- If tax has been paid to government for services not rendered/provided/excess payment made to government, then it may be adjusted in future dues, provided, the corresponding excess tax collected from customer is refunded.
The adjustment should be intimated to the Jurisdictional superintendent of Central Excise within a period of 15 days from the date of such payment.
Service tax once paid is refunded only in the case when refund the tax collected from your client is refunded to them. Proper proof is required for this.
Sangeeta
(Accounts)
(30 Points)
Replied 24 April 2010
Hi, Vishnu Priya,
Thanks for your reply. But I think I could not make you understand what I am trying to Know.
My query was, 1) suppose our company's service is in the there list of those 109 services , in such case if any starting company is eligible for ST registration or after reaching certain Turnover only a company is Eligible for Registration?
2) Kindly brief me the concept of CENVAT Credit.
Thanks,
Sangeeta
vishnupriya
(CA Final)
(1418 Points)
Replied 24 April 2010
Service provider whose aggregate value of taxable (turnover) services in a FY exceeds Rs.9.00 lacs should mandatorily get registered.
There is no need to pay service tax if the value of taxable (turnover) services is below Rs.10.00 Lacs
CENVAT Credit:
1.Service providers may take credit for the Service tax/Excise duty suffered by the input services/input and capital goods purchased.
2.This credit may also setoff against the tax payable on the output service provided, for this purpose every service provider must maintain cenvat account.
3. After setoff balance if any is paid by cheque
4. The credit balance in cenvat account is an asset which stands for tax paid in advance.
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