WE ARE REGISTERED OUR MFG UNIT UNDER CATAGORY OF GTA AND CONSULTING ENGINEERS. FROM THE PERIOD 2004-2005, 2005-2006, 2006-2007 TILL DATE THERE WAS AN ACCUMULATED IN PUT SERVICE CREDIT AVAILABLE IN OUR RECORDS WHICH WE AVAILED FROM SECURITY CHARGES, TESTING CHARGES, SERVICE CHARGES ON MAN POWER PROVIDING FOR MANUFACTURING OF PRODUCTS, SERVICE TAX ON PERFOMANCE BANK GURANTEE CHARGES, TELEPHONE CHARGES ETC.,
THE DAY ONE CONSULTING ENGINEERS SERVICE TAX PAYMENT WE ARE ADJUSTING WITH IN PUT SERVICE TAX CENVAT CREDIT.
GTA ( INPUT SERVICE AND OUT PUR SERVICE) SERVICE TAX PAYMENT AFTER AVAING ABATEMENT F0R THE PERIOD 2004-2005, 2005-2006, 2006-2007 WE HAVE ADJUSTED WITH IN PUT SERVICE TAX CENVAT CREDIT ONLY. BUT SINCE THEN THIS PAYMENT WE ARE PAYING THROUGH CASH ONLY.
BUT RECENT SERVICE TAX AUDIT THEY HAVE OBJECTED THESE TWO POINTS AND SAID THAT CONSULTING ENGINNERS PAYMENT AND GTA PAYMENT CANNOT BE ADJUSTED WITH INPUT SERVICE TAX CENVAT CREDIT AND ISSUED SHOW CAUSE NOTICE.
IS IT DEPARTMENT SHOW CAUSE NOTICE IS CORRECT?
PLEASE COMMENT ON ABOVE IF POSS WITH NOTIFN ANY.
WITH BEST WISHES
SATISH KUMAR REPAKA
CAclubindia
