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Service tax problem help reqd-

CA Ashish K (CA) (97 Points)

09 December 2008

Dear All,

I have across a problem in service tax and I request all of u to help me out. My question is-

A company has a factory in maharashtra & another in Dadra & Nagar haveli. Labour job is done at both factories. But situation is such that they have excess service tax credit at Maharashtra & deficit in D & NH. Can they transfer the excess credit to D&NH? If yes, also give me the procedure to be followed for the same. Thanking u in anticipation.

Regards,

Ashish

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10 Replies

Rishubh Mathur (Analyst -Taxation) (442 Points)
Replied 09 December 2008

In my view, Company should opt for Centralized Regn in Service tax to balance the input credit from both branches...

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Prasanna.Rm (Finance Pro) (110 Points)
Replied 09 December 2008

hi ashish,

If the company has centralised registration for service tax,being the input service distributor,the company can distribute the inputs to every location. in your case,they can share the inputs provided they are centrally registered.

(Guest)

First let me know whether the company is having a centralised ST registration. If so the assesse can adjust the service tax. But the maximum adjustment of excess ST is Rs. 1 Lacs. Wait, I will let you know the provision of ST Act.

ROHIT SRIVASTAVA (ARTICLESHIP) (31 Points)
Replied 09 December 2008

I hope you have been registered as a service tax distributor.If not just fill in the ammendment of St-1 as a service tax distributor and file it with the deptt.After registration as a service tax distributor you can take the credit of the service tax at your own will.

friends I hope I am right. If not please correct me.

sitaram (Executive Accounts) (136 Points)
Replied 15 December 2008

Tds on Rent, wheather tds dedcted on gross amt included service or net amt before service tax chages . pl reply it's very urgent.

Regards

Sitaram Kubal

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Amar Agarwal (aaa) (84 Points)
Replied 15 December 2008

before service tax. i.e. net of service tax.

ROHIT SRIVASTAVA (ARTICLESHIP) (31 Points)
Replied 15 December 2008

Originally posted by :amar agarwal
"	before service tax. i.e. net of service tax.	"

Amar,

You are mistaken. T.D.S. is deducted on net amount. So, T.D.S. is deducted from rent inclusive of service tax. this is applicable from August. I dont exactly remember the date of notification but it is somewhere around August.