Case Study:

1. Company A leases its production facility to Company B. The Agreement for lease speaks of Company B to reimburse the salaries and wages of employees of Company A who shall continue to work at reduced salaries & wages.

2. In practice, no amount of salaries and wages are reimbursed to company A. Instead, Company B pays the salaries and wages (and PF, ESIC contributions) directly to the employees (and contributions deposited in respective accounts directly)

3. According to law for Manpower Recruitment and supply agency services,salaries paid directly to the employees also are liable to service tax and shall be included in Gross Amount chargeable to Service tax.

My question:
Part 1. Does the clause in the "agreement for lease of production facility", for reimbursement of salaries make company A liable for service tax under manpower recruitment and supply agency.
Part 2. Are there any Supreme / High Court or Tribunal decisions similar to this case study.

WE HAVE PAY RS. 5 LAC AS SERVICE TAX OUT OF WHICH RS 2 LAC IS INTEREST PERTAINING TO FY-2005-06 &2008-09.

WHAT ENTRY SHOULD I MADE & WILL I GET EXPENSE ALLOWABLE?

PLEASE ADVICE..

I have some querry of service tax in case of real estate developers.

As in AY 10-11 new notification was inserted and service tax is also levied on deemed construction.

Now in this case

1) Whos is liable to pay service tax ? is the builder is liable to pay from his pocket or he has to recover from the buyer of the property.

2) If service tax is recoverd from the buyer no can he availed the input credit of that.

Suppose Mr. A purchase Business Premises from builder Mr. B and B has recoverd service tax from A

now can Mr. A take the credit of servcie tax as input credit.

Dear Sir,

I wish to pen down some queries I have on service tax

1) Can a chartered accountant claim cenvat credit in respect of
service tax paid by him to his architect on interiors of his office?

2)Mr A is a service provider. He is an interior decorator to his
client B. Mr C (Engineer) and Mr D( Engineer) assist Mr A in providing
service to Mr B.
At the completion of work, Mr B Pays full amount of RS 1,00,000
Including service tax to Mr A.
Mr A, Later pays Rs 10,000 and Rs 20,000 respectively to Mr C and D ,
including service tax, for assisting him in the whole contract.

Is Mr A Eligible for Cenvat credit on service tax paid to Mr C, and D
on fees of Rs 10 k and 20 K respectively paid to them?
Please advise sir.

incase a company working on cost plus contract, it provides some services and also it replaces some parts of the article, and it will charge profit of 10% on material cost and labour cost , the question is service tax payable is on labour portion only or it also inclusive of profit on material cost also ?

Please help me out regarding the following :

Our client is a trading company in bangalore. While invoicing, it adds some freight charges in the bills. Whether this freight charges is liable for service tax or not. Also, if VAT needs to be charged on the freight charges?

In Our company is software and due to some reason we failed to submit a return of service tax on july 2010 month. and we already deposit a penalty of Rs2000/- to service tax on july 2010.
I would like to know can company will bear a again penalty on service tax. If Yes so how much

Sir,
Our audited party starting a business of construction of resedential units. number of units construct is 19 units. for which party purchase land and build construction thir own and selling resedential units without charge any tax.

so, my question is that what abedment should be given to party for service tax payment

what amount is included in calculation of service tax in case of construction business

material,steel,vat on both, labour
and what should be deducted

Mr. X (proprietor of M/s. XYZ) got service tax registration in 2007-08. He provided taxable services for:
1. April 07 to Sep 07
2. Oct 07 to March 08
3. April 08 to Sep 08
Then he stopped providing services. He has duly paid all taxes & interest thereon, but did not file any of ST – 3. Now, he wants to surrender Service Tax registration. What are the periods for which he is required to file NIL ST – 3. Is late fees compulsory on NIL ST – 3? How can the ST-2 be surrendered?