We had received work order (civil work) worth 60 lacs. Under T&C party will pay Service Tax. Against the goods at site the party had given us advance of Rs. 7,10,505.00 after deduction of 3% WCT and 2.266% TDS.

Now my question is:
Party is not paying Service Tax at the time of issuing us Advance. Party says this is advance and not payment against any bill. Service Tax wiil be paid un release of payment against any bill.

Do I have to pay Service Tax upon receipt of advance. If yes then at what rate?.

a proprietorship company has cenvat credit of service tax available in his business of installation and commissioning and also the proprietor has a property which he has given on rental and there he is to pay service tax on rental services

can he take set off of cenvat credit under installation service to pay off his liability under rental services

We have paid service tax in excess for particular month. whether the same can be adjusted in next month or we have to file refund claim.
Please answer in both the scenario one we have filed the half yearly return and second we have not filed half yearly return

We got civil contract for Rs.623 Lakhs in MP. My boss asked me the impact of VAT /WCT/Service Tax & How can We benefit from this? I arraived material cost of 127lakhs, Direct Cost-272lakhs & Overheads-156Lakhs. I Calculated Input VAT & Output Vat.Here I am unable to know WCT & Service Tax % & value. Moreover my client deducting wct-2% in the payment. Is it elegible for Input tax. Plz help me how to go about?

I wish to know if an imported 'readymade' application software either in 'digital/non-physical' form or 'boxed' form from USA/UK, when sold in India, does 'Service Tax' need to be charged to the buyers ?

As I understand, 'Tally' is also a readymade application software and buyers of Tally are charged only VAT @ 4% and not Service Tax.

Awaiting expert opinions.

Thanks.

G. Prakash

I just signed up for a duplex house in hyderabad. The actual cost of the house is 50Lacs (PlotCost+CostofConstruction=9,33,000+40,67,000). Now the builder is charging ServTax@4.12% on 40,67,000=1,67,560/- and VAT@4% on 42,34,560(40,67,000+1,67,560)=1,69,382. The ST+VAT component is totalling to 3,36,942/-. Is this calculation correct??

As per my understanding of ServTax according to this link http://in.rediff.com/getahead/2005/aug/03tax.htm.

The Statement:
"With effect from June 16, 2005, exemption has been provided up to 67% of the gross value of services provided by the builder. Hence, service tax would be charged on 33% of the gross value."

33%*40,67,000=13,42,110/-. So ServTax=4.12%*13,42,110=55,294/-.

1.Is the above (55,294)calculation correct?? If not
pls explain in detail.

2.ServTax is mentioned as 12.36% in all matters, then how come its being charged as 4.12%? On what basis is this figure reached?

3.Am I being charged inappropriately by the builder??

4.When I was talking to another builder he told that VAT was charged at 1% and not 4% and that too it needs to be paid at the time of registration, so he asked me to reinquire again with the builder i'm signing up wiht. This put me in a BIG DILEMMA, as to whether i'm being taken for a ride or is everything fair.

5.My builder is insisting that I pay the ST & VAT by the time of 1st installment release of the bank loan.

6.The house is still under construction (70%complete), so am I still liable to pay ST/VAT at this stage itself or can I pay after taking possession of house, alongwith registration?

Sorry if i'm asking too much, as i'm not familiar with all these terminology. Just started reading articles on these and confused, until I came across this site. I hope my clarifications are answered in best interest of me.

My Co. is a private ltd. company. We are management consultants and conduct online test for students. Now we have done agreement with other proprietor firm to purchase online test product (psychometric test) with support services for promote to our business. Now we want to pay rs. 75,000/- as per agreement. It will be attract any type of tax liability/TDS.

regards,
lalit

Hi,

Whether service tax is chargeable on the sale of Recharge Coupons. Acutally the coupons are purchase at a discount and sold to the retailers.

Thanks

Hello Friends,

My question is whether service tax is applicable in case of Paddy Milling Charges?

please refer to Notification No 14/2004-st dated 10-09-2004 and also explanation (ii) to Notification No 13/203-st dated 20-06-2003.

The notification no 14/2004 exempts production/processing of goods done in relation to agriculture and the 13/2003 defines agriculture produce.....

Our compnay is engeged in road construction as well as mining sector.We were paying service tax on mining activity.
Upto last year our compnay was not maintaing the seprate records of input and consumption.Hence we were paying the service tax by utlizing the CENVAT credit @20% of service tax payable and remainign in cash. So till 31-3-2008, we have very huge balance in CENVAT credit having mix of taxable as well as exempted input service. Now from 01-04-2008, service provider has to opt weather he is to maintain seprate records for taxabale and exepmted service. We have opted to maintain seprate records for taxabale as well as exepted services. Now my question is what would be treatment of Opening Balance of CENVAT Credit? Can we use for payment of service tax or we shoud write off the same or use only 20%