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Service tax

Viren Kularia (CA Final) (61 Points)

03 July 2013

CAN SERVICE RECEIPIENT PAY SERVICE TAX LIABILITY OF SERVICE PROVIDER FROM HIS BANK ACCOUNT ????????????????

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Saurabh Maheshwari (B.com,ACA) (5923 Points)
Replied 03 July 2013

Yes.....because for payment you need to use cjhallan ...and in challan the name of service provider , his ST Reg No, Divsion,Comm etc to be specified....so for Serv tax deptt the paymen\t would be treated as made by service provider...

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shruthi.v.ramu (Senior Associate @ Grant Thronton US) (72 Points)
Replied 03 July 2013

My question is can the construction company claim service tax input on security charges?

Saurabh Maheshwari (B.com,ACA) (5923 Points)
Replied 03 July 2013

Yes, Shruti ,the credit may be claimed...because security servs fall in the defintion of input serv and Rule 2(i) specifically include the same.......

(l) "input service" means any service,-

(i) used by a provider of taxable service for providing an output service;

and includes services used in relation to setting up, modernization, renovation or repairs of a factory, premises of provider of output service or an office relating to such factory or premises, advertisement or sales promotion, market research, storage upto the place of removal, procurement of inputs, activities relating to business, such as accounting, auditing, financing, recruitment and quality control, coaching and training, computer networking, credit rating, share registry, and security, inward transportation of inputs or capital goods and outward transportation upto the place of removal;