Query regd. Service Tax

1690 views 9 replies

Sathish Karunakaran

ACA

618 Points Joined March 2007

My client is a courier service provider. I wish to know about the following. Kindly clarify!

1. The concern is bound to pay service tax on its ouput service charges and at the time of remittance is eligible to claim service tax already paid on input services bought. would like to know whether VAT paid on input goods/services bought, of any, can be claimed for credit set-off against service tax liability on output services. (excuse if it seems to be odd)

2. From which year onwards credit set-off of service tax on inputs can be claimed?

3. In case vendor from whom input services are bought, issues bill/invoice for aggregate amount only without bifurcating Value and service tax thereon, can still such invoice be claimed credit on self bifurcation? (i.e in the case of value of the bill is inclusive of all taxes)

Thanks

Replies (9)

Raju K. A

service

89 Points Joined January 2008

Dear Satish 1. Input tax credit was available w.e.f 10/09/2004. 2.Credit is available only on Service Tax, Excise duty, Addl.Customs duty paid on inputs/input services used for providing output service. subject to certain conditions.

Guest

441030 Points Joined August 2012

1.Regarding your 1 first query, a service provider can take credir of excise duty or servie tax including education cess on inputs or input services. He can not claim cenvat of VAT paid on its inputs. The duty or sevice tax of which canvat can be availed of is mentioned under rule 3 of Cenvat Credit Rules, 2004, which is complete list. As the VAT paid of inputs are not mentioned in rule 3, hence the credit of VAT can not be taken.

Guest

441030 Points Joined August 2012

2. As far as your 2nd query is concerned, the Cenvat Credit Rules, 2004 was introduced vide notification 23/2004 dated 10.09.2004. Hence form 10.09.2004 onward, the output service provider can avail and utilse the Cenvat credit as per rules mentioned in Cenvat Credit Rules, 2004. 3.And about your 3rd query, to avail the credit the requirement of documents has been mentioned under rule 9, it is compulsory to show the sevice tax or duty charged in invoice or other document which is to base for cenvat credit separately. Hence for cenvat credit sevice tax or duty should be shown separately. thanks

Sathish Karunakaran

ACA

618 Points Joined March 2007

Thanks a lot.

Guest

441030 Points Joined August 2012

My Brother had purchased a flat in Bangalore in April 2007 worth around Rs. 50 lakhs. It is in the final stages of construction and he has made most of the payments to the builder. At the time of the purchase, the agreement (between builder and the buyer) had a service tax component of nearly Rs. 2 lakhs in it, which he had to pay. But recently there was a judgment from the Supreme Court saying that the builder cannot charge service tax from the buyer if the builder has constructed the property himself. This builder has built the property himself. When we inquired with the builder they said this ruling applied only to new agreements. Agreements between the builder and the buyer which were signed before august 2007 stands as it is and buyers have to pay the service tax. Is this true? Please guide us!!! Thanks, Mayank Vasles

Guest

441030 Points Joined August 2012

Ref .Notification No.12/2006-Service Tax.

Case : -

One of Our Service Provider is providing Cash Vans to Our Bank.

Kindly Advise whether the Toll Tax and State entry Tax paid by service providers on behalf of a bank is eligible for Service tax or not.

Kindly Advise in details.

regards,

Pawan Sharma,

ICICI BAnk LTD

Chandigarh.

Originally posted by :Guest
"	Can you help out to know me the latest rate of interest of service tax and to whom and all we have to charge service tax.	"

The current rate of Service tax interest is 13%. Normally interest cannot be passed on to the customer and it is the cost to the company