Pradeep Kumar (Article, CA Final) (227 Points)
03 January 2012PLEASE HELP ME
Q: SUPPOSE A PERSON IMPORTED AN ITEM FROM USA RS 100
IT MAKES BILL RS 20 AS PUURCHASE AND PAY CUSTOM DUTY
AND RS 80 SERVICE TAX.
IS HE IS LIABLE TO PAY SERVICE TAX OF RS 80 .
IF YES THEN HOW MUCH ?
IF NO THEN HOW CAN HE AVAIL EXEMPTION?
THANKS TO ALL IN ADVANCE.
Dipjyoti Majumdar
(CA in service & CS. dipmaj@ rediffmail.com )
(3468 Points)
Replied 04 January 2012
Here it seems you have imported an item or 'goods'. Prima facie there is no service tax impact in India. However, if you import any service from abroad, the receiver of service in India has to pay the service tax on reverse charge mechanism.
The payment must be made in cash and not through cenvat credit. After cash outgo, you can avail or utilise the cenvat credit.
Regards,
CA Prabhat Gupta
(Manager (Indirect Taxes))
(821 Points)
Replied 04 January 2012
The query is not very clear. Please feed some more facts to get specific replies. It is not possible for an importer to make a bill for himself. Please clarify the query.
danielgiibs
(Manager)
(22 Points)
Replied 20 January 2012
I agree with you Prabhat! This query is not posted clearley. In general, packages with a value of less than US$200 will not require any duty charges.
CAclubindia
