Dear Experts,

A Company requires Goods Transport Agencies to transport its Goods due to which it is liable to pay service tax. Can the Company claim input on Service tax paid to advertising agencies, internet service providers, etc in such situation? Can the Company also claim excise duty input to further decrease its Service Tax Liability?

one person is registered excise dealer doing chemical dealr business and he brings his goods from goods transport agency then he is liable for service tax payment just because of exception as service provider & wif he want to register himself then he will tick as service receiver or input service distributotr & if he ticks any of above then which business he will select?????

Hello All,

As per Rule 4 (7) of Cenvat Credit Rules, 2004, in case of associated enterprises, service tax is payable at the time of billing made (not at the time payment is received.

Accordingly, we paid Service Tax on billing to associated enterprises at the time of billing (not at the time of receipt of payment). However, due to certain reasons, this amount is not to be recovered from the party and eventually, this debtors is being written off in current financial year.

The query is whether the Service Tax paid at the time of billing can be taken back as credit against future service tax liability?

If Yes, pls support your justification with any provisions of law, if there is any.

Thanks in advance.

Does this Circular also show that there would be no service tax on detention charges under GTA.
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Circular No. 121/3/2010-ST
F.No.332/29/2009-TRU
Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise & Customs
(Tax Research Unit)
*****
New Delhi-110001 dated the 26th April, 2010.

To
Director General of Service Tax, Mumbai
Director General of Central Excise Intelligence, Delhi
Chief Commissioner of Central Excise (All)
Chief Commissioner of Customs and Central Excise (All)
Commissioner of Service Tax (All)

Madam/Sir,

Subject: Service tax on Container Detention Charges – regarding


Generally marine containers are temporarily brought into a customs territory and have to be re-exported within a specified period. Normally, a Full Container Load is taken out of the port and the activity of stuffing or de-stuffing takes place at the premises of the exporter/importer. The shipping companies / steamer agent provide a pre-determined period within which the container (that has gone out of the port) is to be returned. This is called as ‘pre-holding period’ and the duration of the same is mentioned in the contract. In case there is any delay on the part of the customer in returning the container, the charges known as ‘detention charges’ are collected over and above the contracted amount by the shipping line.

3. Representations have been received in the Board that service tax has been demanded on such ‘detention charges’ under the ‘Business Support Service (BSS)’ or ‘Business Auxiliary Service (BAS)’.

4. The issue has been examined. To retain the container beyond the pre-holding period is neither a service provided on behalf of the client (Business Auxiliary Service) nor is it an infrastructural support in the business of either the shipping lines or the customer (Business Support Service). Such charges can at best be called as ‘penal rent’ for retaining the containers beyond the pre-determined period. Therefore, the amount collected as ‘detention charges’ is not chargeable to service tax.

5. The Board desires that pending cases, if any, on this issue may be decided in line with the above clarification.

Yours faithfully,

(Gautam Bhattacharya)
Joint Secretary (TRU-II)
Tel: 2309302

can revised service tax return be filed, even though original return was filed belatedly

Dear Expert

We are into supply of Imported machines to corporate Hospitals both sale & rentals.

My question is as follows:

Machine given on Lease and collecting CST on the lease rentals as per AP Vat rules @4%. The possession of the machine and the effective control is with the Hospital. In fact, the machine is kept under the lock and key of the hospital only

We would like to know whether this transactions falls under VAT or Service Tax purview?

a charitable society employing 150 members is engaged in the activity of placing labels on beverages.the total amount received by 150 members together has exceeded the basic exemption limit of 10 lacs. They have not charged service tax seperately from the corporation (beverages corporation of kerala). will they be be taxed ???

My client paid service tax on due base ( means when bill raised , then he will paod tax on time up to 31/03/2005.from the date of incorporation.
at the one half year the realization amount is more then bill amount , S tax officer demand on realization base143000/- on 15/04/2005. in this response i filed the letter on 15/05/2005, i clear the queries tell them because of due & realization this demand happen for department i filed last 2 year return copy where the client deposit the tax on due base, after that i filed the letter and clear that i deposit the tax on relazation base from 01/04/2005 onwards.
after that i received the letter from central excise this demand still pending on 11/11/2010,then i filed all document showing that tax was deposited on due base up to 31/03/2005, in this regard i filed 2 year return copy and letter filed on that time 15/05/2010 and clear all queries.

after that i received order that show the demand of143000/- + penality of143000/- on 24/12/2010 mention that party not clear that where we tax deposited.

Now I can go for appeal , kindly suggest me can i made ground of appeal with stick behave of normal.
thanks

Introduction

A private limited company (Website Publisher/Advertiser) resident in India deals with Google Ad sense. Google Ad Sense is a simple way for website publishers to earn money by displaying targeted Google ads on their websites. Ad Sense also lets you provide Google search to your site users, while earning money by displaying Google ads on the search results pages. Basically, Ad Sense is an ad serving application run by Google Inc (USA).

How it Works?

These advertisements are administered by Google and generate revenue on per-click basis. Google is paid by advertiser based on click. Google is rendering service to its client based on the event of a click taking place. They are paying us a share or commission for a click that takes place through our website.

Google will not reveal how much you are earning for each ad that is clicked from your site, but can view the total amount of revenue you've generated that day, week, month, year, etc. in the reports. For example, if you see that you've made $12.60 today from 9 clicks then you can calculate that your average click-thru commission was $1.40 per click. That's as detailed as their stats will get. Also remember, that's only an average. You won't know how much each specific ad has brought in.

Thus, the Ad clicks, impressions and revenue are tracked directly by Google and payment is made by Google directly. Google will pay us our earnings after retaining their share. Publishers do not have any control over the price to be charged.
Google withholds payment until an account reaches US$100. Google issues cheques in Indian Rupees approximately 30 days after the end of each calendar month if we have earned US $100 or more. If earned under that, the balance is rolled over to the next month.

Queries

1. How to account revenue as per accrual basis? Do we have to recognise income when it crosses the threshold limit of USD 100 set by Google or do we have to account every click as per their reports? Rate of USD conversion?
Note that the cheques are issued in INR but reports generated by Google are in US$.

2. If earnings cross INR10 lakhs from Google Ad sense then should we pay service tax on Google Ad sense earning?
Note that firstly we don’t generate invoice on Google? Secondly, earnings are finalised by Google.

Kindly Clarify.

I Have hired a labour contractor who provides labour to our premises. In his bill he charges esi and pf for labour & on total bill charges 6% as service commission. now on this bill he is charging service tax but i think service tax will be charges on his 6% service commssion only.

Plz Guide n give the notification no. if available.

thanks in advance...its urgent...reply soon.

Amit Jain