sivakumar (Asst Manager - F&A) (324 Points)
28 February 2015Hi,
We are Cleraring & Forwading Service Provider. We have not levy Service Tax to our SEZ unit Customers on our Invoices.
We have received Invoices with service Tax from our vendor against SEZ unit transactions in our Name.
Shall we avail Service Tax Input from our Vendor Bill or not? . If Yes or No , Kindly clarify the reason. It will helps to me for reporting to my Higher official.
sesha
(accounts executive)
(1101 Points)
Replied 28 February 2015
sesha
(accounts executive)
(1101 Points)
Replied 28 February 2015
sesha
(accounts executive)
(1101 Points)
Replied 01 March 2015
for sez stpc mepz industrial backward area we cannot claim cenvat credit for st,we can get former1, forme2,fro m concern exemptiondeveloper -notificationcopy,with ust number noand placeofbuiness ushould keep ready eith st-3 returns otherwise st dept willlaskto pay tax on sez so wewant get the supporting documents readytoavoid futurenotices.
Dharmesh
(C.A.)
(47 Points)
Replied 16 March 2015
Dear Shivkumar,
Your query has two issues
1) You have not charged service tax to your client who is operating in SEZ
2) You have input service tax credit against services provided to your above mentioned client.
To clerify you
1) You need to obtained "Form 2" from your client and on the basis of that you are not require to charged service tax to him for the services you billed. Form 2 is issued by service tax department to the unit operating in SEZ. Form 2 will have a mentioning of your company Name and services against which you need not charge service tax.
2) You can take the Input service tax credit paid on Input services. Rule 6(3) of CENVAT credit rule prescribed the reversal of Input tax/duty incase of service provider provide taxable as we as Exempted services. However your service to a unit in SEZ shall not be considered as exempted hence the said rule shall not applicable to your case.
Hope above will clear your doubt.
Regards
Dharmesh
8898507555
Dharmesh
(C.A.)
(47 Points)
Replied 16 March 2015
Dear Shivkumar,
Your query has two issues
1) You have not charged service tax to your client who is operating in SEZ
2) You have input service tax credit against services provided to your above mentioned client.
To clerify you
1) You need to obtained "Form 2" from your client and on the basis of that you are not require to charged service tax to him for the services you billed. Form 2 is issued by service tax department to the unit operating in SEZ. Form 2 will have a mentioning of your company Name and services against which you need not charge service tax.
2) You can take the Input service tax credit paid on Input services. Rule 6(3) of CENVAT credit rule prescribed the reversal of Input tax/duty incase of service provider provide taxable as we as Exempted services. However your service to a unit in SEZ shall not be considered as exempted hence the said rule shall not applicable to your case.
Hope above will clear your doubt.
Regards
Dharmesh
8898507555
sivakumar
(Asst Manager - F&A)
(324 Points)
Replied 17 March 2015
Thank you Mr. Dharmesh. i want more clarity about point no 2. Plsss
R. MANIKANTAN
(MANAGER FINANCE)
(21 Points)
Replied 03 July 2015
Dear Mr.Dharmesh,
We have been paying 5.15% Service tax (5% + Cess 3%) on the excempted revenue (like service rendereed to SEZ units) from our pocket. Subsequent to the abolition of Cess on Service Tax w.e.f. 1.6.2015, please confirm if it is correct if we pay 5% only against these revenue.
Regards,
Manikantan
Sr.Manager - Finance
CAclubindia
