Applicability of Service tax

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This query is : Resolved

Vishal (Querist)

23 September 2010 Every month we are giving credit note to distributor for montly scheme, and he is raising Debit note on us, last time CN amount exceeds Rs.10lcks due to this now Distributor charging service tax on claims amount..

My query is do we have to pay the service tax amount also and can we take the setoff of service tax paid..

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

23 September 2010 DR/CR- what purpose it is raised?

Vishal

Vishal (Querist)

23 September 2010 DR

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

23 September 2010 Dear Vishal, what is service nature and what purpose Debit &credit notes are raised?

Vishal

Vishal (Querist)

23 September 2010 We r telecome service provider we are giving credit against monthly commission to distributor.. and DST is raising Debit note on US in that they are charging service tax due to that my outflow money is high..

For Eg my monthly commission to Mr A is 100000 but Mr A is raising Debit of 100000+ Service tax so my actual paymment to him is mor than 100000..

Now my Query is do I need him to pay service tax on on debit note

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