CA Drushti A. Sanchde (Chartered Accountant) (203 Points)
19 June 2012Hello,
In a Public Limited company, I am verifying the expenses related tyo imports.
In the bill regarding TERMELING Charges the management doesn't take the credit of Servicve Tax paid.
And they have deducted TDS on the amount Excluding the amount of Service Tax Paid.
Is this Correct??? If Yes, Then Can U make Referance to it???
Giridhar S Karandikar
(Team Lead)
(7548 Points)
Replied 19 June 2012
Even if the co is not taking the ST credit, it is liable to deduct tax on whole amount of the bill, as section 194C states that TDs needs to be made on 'any sums paid' . Hence the procedure folowed by the co to deduct tax is incorrect.
Prasad
(Sr. Manager)
(617 Points)
Replied 19 June 2012
Agree with Giridhar, Please also check if they are claiming refund (if eligible).
TDS is under Section 195 on the Gross amount including service tax.
CA Drushti A. Sanchde
(Chartered Accountant)
(203 Points)
Replied 20 June 2012
Thank You for replying me...
But credit of service tax is not taken by the company..But as per my opinion, If while Importing the goods i am paying service tax then i can take the credit...Am i Right or not???
Company is belong to Oil Industry...
Prasad
(Sr. Manager)
(617 Points)
Replied 20 June 2012
Yes you are right, when you are importing services and paying service tax on the same, you can take Cenvat Credit.
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