sreedevi (Trainee) (118 Points)
24 October 2009Sir,
pls clear my doubts.
my company is private company. it is doing business of solar cells manufacturing. On my view, we have to pay service tax for GTA (freight). can i take credit (for paying service tax for telephone bills, courier bills, professional charges bill). Also can i take credit for logistics service tax. Logistics bill comes under the category of freight charges. shall i take these service tax for adjustments or leave it. pls help.
sree
CA Suri Kota
(Assistant Manager @ EY)
(955 Points)
Replied 24 October 2009
If yours is a service provider company.definitely............you can claim the credit......................
CA Suri Kota
(Assistant Manager @ EY)
(955 Points)
Replied 24 October 2009
sorry.........as you already specified as manufacturing company........you can claim the credit on the input services used in relation to manufacture..................
CA.Tarun Maheshwari
(CA, DISA)
(7150 Points)
Replied 24 October 2009
You can claim input service credit only if your product is an excisable product or you are service provider. If you are paying service tax only on freight, then you can not claim service tax input.
sreedevi
(Trainee)
(118 Points)
Replied 24 October 2009
Thanks all of you for your immediate reply.
one more query sir.
we are doing export and import. some logistics, levied service tax , some logistics did not levy service tax. iam new to service tax. pls explain how do i do. today last day for filing st-3. i am newly joined here. old returns are not available here. pls help me sir.
sreedevi
(Trainee)
(118 Points)
Replied 24 October 2009
we are providing excisable goods. not service provider. why do we pay service tax. what kind of amount we can taken credit.
CA.Tarun Maheshwari
(CA, DISA)
(7150 Points)
Replied 24 October 2009
Its not necessary that all the logistics shall pay the service tax. If the logistic company is not paying the service tax, then its your liability to pay it on their behalf. But you can tak a benefit that if the freight is upto Rs.800/- then you need not to pay service tax for them. Charge service tax on the parties of logistics. Pay it and file the return immediately for once. Later on check calculation in ease conditions, and if something incorrect then go for revised return. But right now you should file the return immediately.
CA.Tarun Maheshwari
(CA, DISA)
(7150 Points)
Replied 24 October 2009
If you are manufacturing excisable goods then you can claim sevice tax input on it from the excise duty payable by you. You should first file the return this time, and then after understanding all the things, file revised return. In such a hurry manner, you will not be able to understand all the things so quickly.
sreedevi
(Trainee)
(118 Points)
Replied 24 October 2009
Thank you sir.
if i should pay 2000 for freight charges as service tax. already we have paid service tax 3000 for logistics shipment. now can i adjust. pls clear this only. excess credit 1000
CA.Tarun Maheshwari
(CA, DISA)
(7150 Points)
Replied 24 October 2009
See, you have to pay service tax on freight bill. Whatever be the bill amount, calculate 10.3% of the freight amount and pay service tax. Then you can claim this service tax paid amount from the excise duty payable by you on the products manufactured. I am not understanding your example correctly. In your example, there is no credit amount. If the bill amount demands total 5000 as service tax, then u have to pay 5000/- and later on claim it from excise duty payable. Please elaborate your excat query. Or use my gmail id tarun2507 @ gmail.com . I will try to make u understand the things online.
CA.Tarun Maheshwari
(CA, DISA)
(7150 Points)
Replied 24 October 2009
Pls tell me one thing. Earlier u said you are manufacturing concern. Now u said u are doing export and import. What is the exact status of your business. Pls be more clear.
sreedevi
(Trainee)
(118 Points)
Replied 24 October 2009
Sir,
We are doing export and import also doing domestic supply.
For which, we have to pay service for freight only. (logistics like dhl, capricorn logistics etc) . we have paid service charges for dhl. but capricorn we did not paid service charges. now wat to do? - if Rs. 5000
we have paid service tas for telephone bils, security bill, around 10000.
now can i deduct 10000 minus 5000, remaining 5000 should i pay?
if there is any wrong forgive me
CA.Tarun Maheshwari
(CA, DISA)
(7150 Points)
Replied 24 October 2009
No. then you can not claim any service tax input of telephone etc. You need to pay full service tax. Dear I can not flaash my mobile number here on this website. you just send me a mail on my email id. I will send you bcak my mobile number on it. Now I have understood your case completely. You can not claim the service tax input. What you need to do is just pay service tax @ 2.575% on the logistic service (for capricorn etc, not for DHL). Just pay it. Dont claim any input.
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