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Service Tax Query

Pandiri Ramu (Business Analyst) (613 Points)

12 November 2007

Hi,

I have one dought on Service Tax

One person travelled to Banglore(on behalf of consultancy of Professional learning) for this they have right to reimburse the amount from our co. and for this they are adding Service Tax 12.36%. Shall i deduct the TDS if yes how much.

Please update section and your mobile no.

Thanks,

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10 Replies

Dayal (Gen. Manager - Indirect Taxation) (3431 Points)
Replied 12 November 2007

TDS on Gross amount is to be deducted on professional fees @ 11.330

Pandiri Ramu (Business Analyst) (613 Points)
Replied 12 November 2007

Thanks, But the reimbursement is Air Travel expenses

Dayal (Gen. Manager - Indirect Taxation) (3431 Points)
Replied 12 November 2007

Any amount paid to a professional in rendering a service will form a part of his professional fees, even though in the nature of re-imbursement, still it will accounted for as his professional fees. Just take an example, only because he could travel, he has been able to render his service in his capacity as a professional. To avoid such situation it would ideal for the company to make the arrangement for the travel of the professiona

Pandiri Ramu (Business Analyst) (613 Points)
Replied 13 November 2007

Thanks alot Dayal

(Guest)

i have old service tax no . i want a new service tax code no., my pan is aanpg8562c pls give me a new code no for deposit of service tax we are engage in construction of res. complex

(Guest)

If any Company service tax laibility is less then service tax cenvat credit amount. so please can you explan what is the procedure recoverable this amount. (company name salient business solution ltd. & this is BPO. company service tax laibilty is only 15,000/- to 20,000-annual but service tax recoverable amount is approx.25,00000/-. so please immidiate suggeste me what is the correct procedure for collect refund this amount

OFFICESELVA (Service) (515 Points)
Replied 08 March 2008

Discharging your service liability is one thing and availing Cenvat credit is entirely different matter. So you have to pay tax if your taxable income is more than Rs.8 lakhs for current year (2007-08).

Dayal (Gen. Manager - Indirect Taxation) (3431 Points)
Replied 10 March 2008

You have not clarified as to how such credit is admsissble, what are the services that you are availing. there are certian refund provisions if you are exporting your services in terms of export of services, if you can please clarify. You can always adjust your liability against your cenvat credit, there shall be no liability in the said instance.