While working with client, I came a across one practical situation of service tax liability on reimbursement. Please suggest a correct answer to decide in below situation.

Situation:

X a company engaged in retailing business. X purchases apparels of different brands from several vendors for selling it out in its store. For that, X have an agreement with all vendors to retain the margin on selling amount to be paid to them (It seems like consignment sales, but it is a regular purchases and not on consignment). As per the agreement all vendors should send their own staff to sell their product in counter. If in case, vendor fails to give staff to sell the product in counter, X should depute its own staff and vendor should reimburse the cost of this staff. X deputed few staffs and charging to vendor for the cost of these staff (only the amount paid to staff). Should X liable to collect and pay the service tax on this? If X is not a specific service provider in man power recruitment and supply, is it makes any difference (X has not registered for this services)?

Please any one give me correct answar, as the case it would be, but mention case laws if it is available

While working with client, I came a across one practical situation of service tax liability on reimbursement. Please suggest a correct answer to decide in below situation.

Situation:

X a company engaged in retailing business. X purchases apparels of different brands from several vendors for selling it out in its store. For that, X have an agreement with all vendors to retain the margin on selling amount to be paid to them (It seems like consignment sales, but it is a regular purchases and not on consignment). As per the agreement all vendors should send their own staff to sell their product in counter. If in case, vendor fails to give staff to sell the product in counter, X should depute its own staff and vendor should reimburse the cost of this staff. X deputed few staffs and charging to vendor for the cost of these staff (only the amount paid to staff). Should X liable to collect and pay the service tax on this? If X is not a specific service provider in man power recruitment and supply, is it makes any difference (X has not registered for this services)?


Please any one give me correct answar, either case it will be,but with case law if it avilable.


Thanks & Regards,
Gopal Gaonkar

We take contract work from railways which involves changing rails, sleepers e.t.c. and do not involve any purchase/sale of material.
We heard that under works contract, and service provided to railway, it is exempted under the service tax.
I want to know the exact section under which it is mentioned, it would be very kind of you if you can send me the website link of the same in the central excise website.

Whether brand owners providing right to use of their brand and technical know-how fall
under intellectual property services?

We are the security services providing company.

Our problem is one of the client does not release the service tax amount charged in the invoice along with the inovice payment. They release the service tax amount separtley after 2-3 months of release of invoice payment. What should we do ?

Dear Sirs,

We are a Indian Company (100% subsidiary of Foreign Company). Expats are deputed in India and work only for Indian Company. (this is supported by Deputation agreemnt which clearly mentions the expats to work as per policies, rules and regulations of Indian Company and foreign company do not have any infuence).

The Expats are paid as below:

1. Portion of Salaries and related benefits is paid abroad by Foreign Company and Debit Note is raised on Indian Company on Quarterly Basis to reimburse this amount.
2. Portion of salary is paid in India to Expat.

Here assuming the expat is working as a Pure Agent for Indian Company and reimbursements are made on actual basis to Foreign Company, this transactions are excluded from service tax payments.

Kindly Advise

Friends,

Should we as a company be charging service tax for customized software development for a client of ours?

And is our client entitled to deduct TDS @ 10% on our invoice amount?

We were shocked to discover a cheque of only 90K against our invoice of 100K
Is there any way of recovering that money?

Thanks

Company A in india receives legal consultancy service from a company B in singapore. the Compnay B has charged GST in its invoice which is duly paid by the indian company.

Now, the question is whether Company A is liable to pay service tax in india being recipient of foreign services or not? if no, why?

Sir, I want to know that can we save the service tax by spliting the consolidated bill( fooding and service charge) of banquet under the banquet service i.e. provided by hotel. Because we are paying VAT as well as service tax (with abatement)on consolidated bill.

I require your opinion/help on below matter.

We have mfg facility at Navi mumbai and our project at Gujrat Site , we require to make erecting, commissioning, installation at site on our product, so we depute contractor at site from mumbai and after he raised /addressed the Service Tax bill with service tax on our mumbai mfg facility , which we have taken credit in cenvat under account of Input for Site services at our mumbai office, now excise preventive people taken objection and they told us to reverse the same with interest from last three year , accordingly we have reversed from the cenvat account , further to that as per our information can it be availed the credit later on in Service Tax account/register.

And now they require interest on the same.

Pls advice on below points:-

1 As per the rule we require to reverse the amount which we have taken credit in Cenvat register for site services?

2 After reversal from the Cenvat Register as per the rule can we able to take the same credit in Service Tax separate register under site services?

3 As per the rule after reversal amount from Cenvat Register, can we require to pay the interest?

Santosh - 9820271068