Major change in Service Tax - Notification 18/2011 - Service Tax

Major change in Service Tax - Notification 18/2011

Page no : 2

PRACHI AGNIHOTRI (Practice) (29 Points)
Replied 05 August 2011

I wanted to know that I deposited service tax when i just raised bill but the payment of that bill is not received yet then what is the provision regarding service tax deposited by me...................... what is the time limits of that refunf if possible i am totally confused on this point ..............plz someonr clarify this>.........................

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Pinky Agarwal (Chartered Accountant) (426 Points)
Replied 05 August 2011

Originally posted by : PRACHI AGNIHOTRI
	I wanted to know that I deposited service tax when i just raised bill but the payment of that bill is not received yet then what is the provision regarding service tax deposited by me...................... what is the time limits of that refunf if possible i am totally confused on this point ..............plz someonr clarify this>.........................

If the payment of bill is not received yet and it is certain that it will not be received in future then in this case it become bad-debt for you and no specific provision regarding bad-debt is given under POT and i think once you hav dewposited service tax u wil nt get any refund thereof. Further as the liability for payment of service tax is on service provider. So, u r liable forpayment of service tax..

Raj (manager) (24 Points)
Replied 12 October 2011

I am sorry but i cannot understand the financial mumbo jumbo. But i have a question which i would appreciate if someone can answer.

We are a foreign company who has been awarded a contract to provide services to a major company in oil & gas industry. Being a foriegn company we were told that the Indian company will withhold 10% tax from the total invoice. the service tax will be paid by the indian company @ 10.3%.

My question is, since we are a foreign company and the payments will be done directly to us outside India, can we claim part or full amount of tax that has been withheld by filing tax returns. Do we need to get a PAN card for the company in order to do that based on the work order. I could not find any information on this and would appreciate if someone can help me in understanding it.