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Service Tax Query -Can anybody help

RICHA SHARMA (CA ) (202 Points)

20 September 2008

I have a query regarding service tax which is as under -

We are a service provider providing service as "Works Contract Service" as we are engaged in the construction of single residential units. But, we registered ourself under "Construction of Residential Complex" prior to 1.6.2007 though at that time we were not liable to pay any service tax. After 1.6.2007 we charge service tax as provided in the Works contract services without amending our registration certificate now we want to amend our service tax registration no. Can we do so. Moreover what will happen to all the services provided by us from 1.6.2007 to till date.

We further inform you that we had filed service tax returns in which we had mentioned that we are providing works contract services and paid the tax accordingly

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16 Replies

Rishubh Mathur (Analyst -Taxation) (442 Points)
Replied 20 September 2008

hi,

Well u seem to be in great mess.

If you/ your organisation is poviding services in nature of " Construction of Residential Complex", then you could have easily get registred for (A) both the services simultaneously OR (B) only for the said service (depending if you are still providing services in nature of " Execution of Work Contract".

The biggest blunder done by you/ your orgn. is that you filled in wrong service category (as you mentioned) in the your service-tax return. For as per Dept data/ info you are proviing services in nature of Works Contract

Further, you can not revise that return as its time-barred (60 days from date of filing return)

Now, I'll advise you to consult a Service-tax Consultant with all details. You need to amend your registeration details vide Form ST-1. Then departmnt will issue a fresh certificate of regn (in Form ST-2) in place of original ST-2 issued to you/ your orgn in first place.

Further, I'll advise you to take professional help before taking such steps. See, amendment in regn with ST Dept is not very complex or straining process. But the consequences of not doing so & taking steps as taken by you/ your orgn create a bigger mess.

You can only hope Department doesn't ind out your error/ mistake.

regards

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virendra parwal (CA) (68 Points)
Replied 20 September 2008

after 1-6-2007 you can file your service tax return under works contact service. you have done right. now you get your certificate amended by including this new category.

Raj Chitroda (Accounts) (325 Points)
Replied 20 September 2008

Hi, friends,

our firm listed on Site Prepartation & Clearance category in Service Tax Departement

My topic is that

and now we imported our new construction equioment from japan and we padi custom duty for the same. We heard the custom duty is adjust agains the service tax if our equipment in the list of capital goods.

So any one can provide the list of Capital Goods as per service Tax

Thanks

CA V. Mohanakrishnan (Chartered Accountant) (401 Points)
Replied 26 September 2008

hi mr. rajesh

cenvat on capital goods is available as stated in te CENVAT credit rules, 2004.

Such capital goods should be falling under Chapter 84 - machinery and mechanial equiments or Chapter 85 - elctrical machinery and equipments or Chapter 90 - Technical instruments. It would also include components, spares and accessories of the goods as specified in the above chapters.

the chapters are falling under heading 6804 of the first schedule to the Excise tariff Act.

since u have not specified the exact details of the equipment, the complete chapters have been stated. please look into the excise tariff act and confirm regarding the same.

further credit is available for 50% in the year in which the same is received and the balance 50% in the next year.

Taxguy (Consultant) (3383 Points)
Replied 26 September 2008

good education and clear discussion.

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(Guest)

Hello,

I have query regarding, the service tax on commercial vehicle hire on monthly basis

CA V. Mohanakrishnan (Chartered Accountant) (401 Points)
Replied 06 October 2008

pls provide details on the value of billing in a year and other information

(Guest)

In a company, there is a procedure of detecting tax amount from employee from the last two months salary only. But 3 employees obscond on 9th month of that year itself. hence company unable to claim tax laiability from the employee.Shall company can escape from paying tax on behalf of employee and explain to the tax dept as you collect tax rom that obsconded employee itself.

Sanjay Dwivedi (Advocate & Consultant) (143 Points)
Replied 10 October 2008

It is my suggestion that one thread should be used for a single question or for questions emanating from the discussion. If a new question is to be asked, why not to start a new thread!

Sanjay Dwivedi (Advocate & Consultant) (143 Points)
Replied 10 October 2008

It is my suggestion that a thread should be used for discussing a single question or for related issues arising out of the discussion. If a new question is to be asked, why not to start a new thread?

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Sanjay Dwivedi (Advocate & Consultant) (143 Points)
Replied 10 October 2008

It is my suggestion that a thread should be used for discussing a single question or for related issues arising out of the discussion. If a new question is to be asked, why not to start a new thread?

OFFICESELVA (Service) (515 Points)
Replied 10 October 2008

For that to happen, guest posting should not be allowed.

Prakash (Business) (51 Points)
Replied 12 October 2008

Hello,

A client is based in Mumbai and imports Readymade Software from USA. They are charged CVD & Octroi. They sell these readymade software in India and charge VAT @ 4% (for local as well as outside Mumbai) to clients. To some buyers, they offer installation of the software FREE.

I wish to know:

- Is Octroi chargeable on import of readymade software ?

- Are they liable to charge Service Tax from the customers here, although the software is readymade ? Also, if installationn is considered as service, even though it is offered FREE ? Are they still liable to charge Service Tax and if so, then at what rate ? If they charge Service Tax, then are their customers also liable to cut TDS from their payment ? And again, are they (importers) too liable to cut TDS from the supplier's payment made against import purchases ?

Waiting for expert opinions.

Best regards,

Prakash