Dipjyoti Majumdar (CA in service & CS. dipmaj@ rediffmail.com ) (3468 Points)
03 April 2013Friends,
What is meant by R&D Cess payable as per Clause/Point/Serial Number B2.18 in the ST3 for July to Sept 2012 ST3 Return due to be filed by 15 April 2013.
Regards,
Dipjyoti Majumdar
(CA in service & CS. dipmaj@ rediffmail.com )
(3468 Points)
Replied 05 April 2013
Any thoughts, Friends
Deepak Gupta
(CA Student)
(15922 Points)
Replied 06 April 2013
Research & Development Cess is paid on Import of Technology in India in terms of any foreign collaboration agreement and can be claimed as credit for payment under Service Tax.
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If R&D cess is paid, service tax payable is reduced to that extent – Notification No. 14/2012-ST dated 17-3-2012.
Notification No.14/2012 - Service Tax
New Delhi, the 17th March 2012
G.S.R. (E). - In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts the taxable service involving import of technology, from so much of the service tax leviable thereon under section 66B of the said Act, as is equivalent to the amount of cess payable on the said import of technology under the provisions of section 3 of the Research and Development Cess Act, 1986 (32 of 1986), subject to the following conditions, namely:-
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(a) that the said amount of Research and Development Cess is paid within six months from the date of invoice or in case of associated enterprises, the date of credit in the books of account:
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Provided that the exemption shall be available only if the Research and Development Cess is paid at the time or before the payment for the service;
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(b) that the records of Research and Development Cess are maintained for establishing the linkage between the invoice or the credit entry, as the case may be, and the Research and Development Cess payment challan.
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2. This notification shall come into force from the date on which section 66B of the Finance Act, 1994 comes into effect.
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** Note:- Sec 66B came into effect from 01.07.2012 (Notification No. 19/2012-ST)
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