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Discussion > Service Tax > Queries >

CST on Service Tax

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Senior Specilist-Finance

[ Scorecard : 30]
Posted On 12 April 2011 at 16:32 Report Abuse

One of our vendor is claiming CST on service tax. Can the vendor claim the CST on service tax?


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Harpreet
* * * * * *

[ Scorecard : 1648]
Posted On 12 April 2011 at 16:43

How can it possible?????? Tax on Tax (Tax ke uppar Tax).....Who has teached him (Vendor's Accountant) to do like that?????



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Joey Tribbiani
fdg

[ Scorecard : 1849]
Posted On 12 April 2011 at 17:01

Wah bhai wah,service tax k upar CST.. Someone go and tell him CST is charged on Goods which is defined as

includes all materials, articles, commodities and all other kinds of movable property, but does not include newspapers, actionable claims, stocks, shares and securities

Whereas service tax is charged on service  provided



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U S Sharma
glidor@gmail.com

[ Scorecard : 19381]
Posted On 12 April 2011 at 23:01

please share the invoice details, i assume you are discussing the WCT on which service tax as well as CST both are chargable.


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CMA. Pralay Chakraborty
Cost & Management Accountant

[ Scorecard : 460]
Posted On 13 April 2011 at 10:12

Originally posted by : Harpreet

How can it possible?????? Tax on Tax (Tax ke uppar Tax).....Who has teached him (Vendor's Accountant) to do like that?????

I know this is bit rediculous to charge CST on ST (if it is CST so..)...

but there is a practice to charge TAX ON TAX (Tax k upar tax) in few cases..

But CST On ST is too much...:) :)




CMA. Pralay Chakraborty
Cost & Management Accountant

[ Scorecard : 460]
Posted On 13 April 2011 at 10:21




mridul savio Pinto
articled trainee

[ Scorecard : 1412]
Posted On 13 April 2011 at 12:24

how can CST BE CHARGED ON SERVICE TAX ?     CST IN A INDIRECT TAX WHICH IS LEVIED ON INTER STATE SALES IN THE COURSE OF INTER STATE TRADE /COMMERCE




Madhukar N Hiregange
Chartered Accountant

[ Scorecard : 19452]
Posted On 13 April 2011 at 13:18

If the contract is one of WC where both applicable, both the transfer and service are simulatanously provided. Therefore CST on ST not legal.



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CMA. Pralay Chakraborty
Cost & Management Accountant

[ Scorecard : 460]
Posted On 13 April 2011 at 13:33

 

 

 

I blv WC service covered only specified contract where Vat/Sales Tax paid on Works Contract.
 
For reference Valuation in Works Contract is as follows:
Broadly, two options are available to service provider –
(a) Calculate value of service as per rule 2A of Service Tax (Determination of Value) Rules, 2006 (in short ‘Valuation Rules) and pay service tax at normal rate  on such ‘value’. In such case, assessee can avail Cenvat credit of input services, inputs and capital goods
(b) Pay service tax under ‘composition scheme’ at 3.43%(1/3rd of current rate 10.3%) of ‘gross amount charged for works contract’ (inclusive of education cess and SAH education cess), under ‘Works Contract (Composition Scheme for Payment of Service tax) Rules, 2007’. As per rule 3(2) of Composition Scheme, the assessee cannot avail Cenvat credit of inputs. Thus, the assessee can avail Cenvat credit of input services and capital goods.
In both the cases, Vat/sales tax will not be included in the ‘value’ for purpose of calculating service tax.



rahul
patnerr

[ Scorecard : 34]
Posted On 14 April 2011 at 09:20

CST IS REVENUE OF CENTRAL GOVERNMENT WHICH IS CHARGES ON SALES AGAINST "C" FORM. JOB WORK IS REVENUE OF CENTRAL GOVERNMENT WHICH IS CHARGED AT THE VALUR OF JOB WORK OF RAW MATERIAL CONVERTED TO FINISHED GOODS. AT THE TIME OF SALES FINISHED GOODS VALUE OF JOB WORK AND SERVICE TAX INCLUDED IN THE COST OF GOODS SOLD.



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