service tax quarries

CA. Vinod (CA) (248 Points)
Replied 14 August 2008

Y Ltd is doing the right thing by showing Input credit of service tax. A ltd can no escape from the liabilty on the basis of a cerificate provided by X Ltd because X Ltd is at fault and paid the amount without taking credit of Input Service tax. Now X ltd has to pay the amount inclusive of service tax to A Ltd so that A Ltd can deposit the Service Tax and X Ltd has to revise it return by claiming Input credit and asking for refund/adujustment of service tax paid as excess.

With regards,

Ca.Vinod Malhotra

ramakrishnan (free lancing) (22 Points)
Replied 28 August 2008

We are the logistics company and would like to know the Service tax to be collected on whole amount or only commision we charges to the customer.?

Thanks

tarunjjain (CA Practice ) (117 Points)
Replied 28 August 2008

how to leve tax on composite contract in service tax ?

SIDDHARTHA SANKAR ROY (Government Servant -MOF) (868 Points)
Replied 17 October 2008

Originally posted by :deepak

"

I have some problem regarding service tax.

One of my client is a private limited company, say A Pvt. Ltd., providing engineering consulting service to its clients.

X Ltd., a client of A Pvt. Ltd., is using this service as an input service for the service provided by it to its clients and charging service tax on it from its client.

Here the problem is :

1         A Pvt. Ltd. has charged service tax on service provided by it to X Ltd. But X Ltd. replied that it is not liable to be charged service tax saying that as X Ltd. has recovered whole service tax from its client and paid whole amount to service tax department. X Ltd. is ready to issue a certificate for the same matter to A Pvt. Ltd.

            So, whether the stand of X Ltd. is correct?   What will A Pvt. Ltd. have to do to safeguard its position? Is there any provision / notifications / circulars on this matter?   If yes, than please specify.

2        In the same situation as above, another company Y Ltd. is paying service tax to A Pvt. Ltd. and claims this service tax as input credit.

           So, whether is there any adverse effect to A Pvt. Ltd. if it will charge service tax from one client and will not charge service tax from other client?   What is the right way for A Pvt. Ltd?

I kindly request you to provide me your helpful guidance on above problems.

Thanking you,

Yours truly,

CA. Deepak Patel
Dholka
Gujarat
98984-66115

From your query it appears that 'X' is also a taxable service provider and they are confusing between their service tax liability for the service provided by them with the service tax charged by 'A', which is not correct. The certificate issued by them would be of no help to 'A'. As the payment has already been recived by 'A' against provision of taxble service provide, the amount received should be treated as price cum duty and accordingly the serice tax liability should be arrived at.

"

venu (article student) (23 Points)
Replied 23 October 2008

i have small query regarding applicability of service tax and its classification

I myself an articled student

one of my client is an authorised agent for selling of " coin phone boxes"

He has been already registered with the ST Dept as his taxable service as "Business auxillary service"

My doubt is that how come his service is covered under " Business auxillary service "

and please provide me the relevant rules and laws

ie., statutory applicability and exemptions and exclusions if any

Looking for the reply............

Raj Chitroda (Accounts) (325 Points)
Replied 26 October 2008

Hi

We are registered with ROC as PVT. LTD.

We have paid our sub contractor 11 Lac for his work and he is not paying Service Tax, So my question is

May we are liable to collect service tax certificate and instruct him to register in Service Tax Department ?

Please early reply

SIDDHARTHA SANKAR ROY (Government Servant -MOF) (868 Points)
Replied 19 November 2008

Originally posted by :venu

"

i have small query regarding applicability of service tax and its classification
I myself an articled student
one of my client is an authorised agent for selling of " coin phone boxes"
He has been already registered with the ST Dept as his taxable service as "Business auxillary service"
My doubt is that how come his service is covered under " Business auxillary service "
and please provide me the relevant rules and laws
ie., statutory applicability and exemptions and exclusions if any
Looking for the reply............

If he is working as a Commission Agent, then it is correct for him to be registered under Business Auxiliary Service.Sec 65(19) of Ch V of F.A, 1994 may be referred to.

"