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Service Tax1 for 100% EOU

Vinesh Garg (31 Points)

10 May 2007

Whether an 100% Eou company is liable to pay service tax on services obtained by it?

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4 Replies

Sanjay Dwivedi (Advocate & Consultant) (143 Points)
Replied 10 May 2007

Dear Friend,

Ordinarily the person rendering the service is liable to pay the tax to the government. He is entitled to collect it from his customer. Presently, there is no exemption to the services provided to 100% EOUs.

However, the EOU would be entitled to avail Credit of the tax paid, if the service is an "input service" for him. If it cannot utilise the credit, it is entitled to refund under Rule 5 of the Cenvat Credit Rules, 2004.

Pls also remember that in case of certain services, the receiver of the service/ person paying for the service is liable to pay the tax (to the government) .

Thanks,
Sanjay Dwivedi

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ankit bhatia (financial services) (37 Points)
Replied 31 May 2007

EOU would be entitled to avail Credit of the tax paid, if the service is an "input service" for him. If it cannot utilise the credit, it is entitled to refund under Rule 5 of the Cenvat Credit Rules, 2004.

ankit bhatia (financial services) (37 Points)
Replied 31 May 2007

C.k.chamy (264 Points)
Replied 11 June 2007

I am from EOU having the input services from the construction builders 1.5 years back. Now only i aware about the cenvat credit availment is there any possibility to set off the cenvat ;;;;;;;;;

Yours truly,
C.k.chamy