Suprio (Sr. Manager Accounts & Systems) (43 Points)
25 July 2010
Dear Experts.
Our Vendor ( For Job-work) is charging CST on material cost & Service Tax on Both ( Material + Labour ) in the same invoice. While questioning they replied that, the material they have utilized was cenvatable and that's why it will attract service Tax . Can anyone Suggest me whether service Tax is applicable on material cost ? No doubt we are taking credit on it but it effects our funds application.
Regards
GHOSH SUPRIO
RAMESH KADAM
(ASST MANAGER)
(21 Points)
Replied 20 September 2012
X entity (Separate Entity as a Trust) is providing various Skill enhancement training to various students. X entity (Trust ) is also providing study material during the training course and the same is charged separately in the invoice.
X entity is charging service tax only on training fees portion and not on cost of study material supplied.
Kindly advise regarding changeability of service tax on cost of study material.
CAclubindia
