prasad (manager) (171 Points)
20 December 2011Dear All,
Ours is a software company in Karnataka. We would like to pay service tax through online using www.aces.gov.in. But we didn't find any support documentation regarding that in the concerned website. Pls. guide us. We heard that on the 1st year of service, companies will get 100% tax exemption. Pls. correct us if we're wrong.
Thanks in advance.
Prasad
Tanay Choksi
(Student)
(112 Points)
Replied 20 December 2011
Respected Sir,
Go to E-payment tab on ACES website to pay tax Electronically.
OR
Go to https://cbec.nsdl.com/EST/InputPageForEPaymentServlet
Regards,
Tanay Choksi
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 20 December 2011
small service providers may opt to avail exemption of 10L in year provided they are not claiming input credit of inputs / input services.
prasad
(manager)
(171 Points)
Replied 21 December 2011
Dear U S Sharma,
Thanks for your response. Pls. let me know what is the meaning of 'claiming input credit of inputs / input services'.
with rgds,
Prasad
CA Prabhat Gupta
(Manager (Indirect Taxes))
(821 Points)
Replied 22 December 2011
Mr. Prasad,
Input Credit above refers to CENVAT Credit/input service tax credit. As you are an output Service Provider you are liable to pay service tax on Services Provided by you to the customer. You would be charging Service Tax from your customers in invoices issued by you. Similarly, for providing output service you may have used services of others, and must have paid service tax on their bill. In case these services come under the category of input services, you can claim set off of service tax paid on input service from service tax to be paid on output service.
If for example, total Service Tax Collected by you on your Output services amount to, say, Rs. 100000/-. For providing this service you have used some input services, say, internet telephony services and paid Service Tax of Rs.30000/- on such service. This Rs.30000/-, being service tax on input service, is available as input credit. Hence, instead of paying Rs.100000/- as your service tax liability, you may pay Rs.70000/- (Rs.100000/- less Rs.30000/-) only. This is 'claiming input credit of input services'
RENGARAJ R.K
(ADVOCATE)
(7557 Points)
Replied 23 December 2011
Mr Prasad,
Further to CA.Prabhat Gupta's reply, cross utilisation of input tax credit is also permissible. It means, suppose you are purchasing an excisable commodity (like capital goods) with excise duty charged in the bills, such excise duty value is also allowed to be set off/adjusted against your output tax, provided such excisable goods should be used (in relation to) exclusively for your output service.
regards,
Debashis
(MBA (Finance ) Asst. Manager Accounts SEALL LTD )
(65 Points)
Replied 23 December 2011
Dear Mr. Prasad ,
You may pay tax online through www.NSDL .com .
provided you have net banking facility with your respective banker. ( facility for payment of statutory duties)
Secondly as far as CENVAT credit facility is concerned :
It is simply a input credit facility ( for the tax that you paid may it be through Electric Bill , Telephone Bill or even if you import any capital goods from abroad , a portion of the Custom duty is also eligible for having input tax credit provided such service or good must n be used exclusively for your output service .
you may also have the carryforward facility of CENVAT .
Input tax on Revenue Item is allowable to be deducted 100%
where as same on Capital Item is allowable only 50%.
balance 50 % to be adjusted in next financial year.
Regards ,
Debashis .
CAclubindia
