As per section 65(15), hospital has to charge service tax on person covered by health insurance scheme, for any health check-up or treatment, where the payment for such healt check-up or treatment is made by the insurance company directly to such hospital. Please clarify on the followings:

(a) Whether service tax has to be charged on Implants and medicines purchased by hospital for the patient and the same is included in the final bill.

(b) As per above defination, it says "where the payment is made the insurance company directly to such hospital". Kindly clarify about service tax applicability, if payment is made by "TPA (Third party Admin or business entity" on behalf of insurance company.

(c) The act does not provide defination of "Health Services". What are the services included under health services.

Hi all,

Pls guide me how to fill up the ST-3 form online. I am facing the following problems:
1. While filling up the S & H.Edu.Cess, there is a massage says S&H.Edu cess is equal to zero. I am unable to fill the amount in those cells.Is it software error? Should I ignore it? But If i ignore it, then where to put the amount of S & H.Edu. Cess? Should I add it in Edu. Cess column?
2. In payable-Service(1) sheet, (II)(j) point, Gross amount for which bills/invoices/challans are issued relating to service provided...., which amount is to be filled in? We issue invoices (including service tax) just after we provide our services to our customers, but we pay service tax when we get the payment in full and final. Sometimes it takes one week, sometimes one month and sometimes six months or more. Now pls suggest me which amount is to be filled in this column (II) (j)?
3. We are in helicopter chartering business. We issue our invoices to our customers including service tax @10.3%. We take input credit of S.Tax only. Can we take input credit of VAT, CST etc. also?
Thanks
Preeti

Hi,
I have started an ad agency on 13th oct 10; and filled a ST 1 for the registration

i want to know which form/return and which types of records should i have to maintain? and at which interval?

shall i have to approve my invoice format from the ST department?

Regards

Hello,
I'd be grateful if you folks could help me with making a NIL Service Tax Return. I went through the previous threads on this topic. I understand that I need to:
(1) Say "YES" in Col C1 ["Has the assessee availed benefit to any exemption notification (Y / N)"]
(2) Mention the notification numbers [(a) 006/2005 dated 01-03-2005. (b) 008/2008 dated 01-03-2008.] in the Col C2 ["If reply to column "C1" is yes please furnish notification Nos."].
My question is whether I need to fill-in the relevant figures in the table below? I do have minimal billing during the HY April 2010 to Sep 2010. But in the previous FY (FY2009-10) my turnover was below 4lakh. This is why I am exempt from deducting Service Tax.
Please let me know if I:
(1) Should I fill in the billing figures in cols F (a) (i)?
(2) Should I fill in the billing figures in cols F (e)? Or should I leave this col blank?
(3) Should I fill in the billing figures in cols F (g)? Or should I leave this col blank?
(4) What other columns other than C1 and C2 should I fill in, when I am making a NIL return?
Thanks in advance. :)

Dear Sir,
Kindly examine the following case and advise us:

Background

We had constructed a private railway siding for a client in Madhya Pradesh where the contract was on EPC basis and Schedule of Rates was inclusive of MP VAT. We had opted for composite scheme for this project. The Client recovered VAT and deposited the recovered amount with Tax Authorities and issued appropriate TDS for it.
The Agreement was excluding the element of Service Tax and the Client had to pay us the amount of Service Tax.

The Client did pay us the amount of Service Tax but recovered VAT on the gross amount and deposited the recovered amount with Tax Authorities. This can be illustrated as follows:

Value of Work done and Billed by us on the Client Rs 1000
Add: Amount added by the Client by way of Service Tax @ 10.3% 103
Gross Amount of the Bill passed by the Client 1103

Less: Recovery of Income Tax by Client 22
Recovery of VAT on Composite Rate 5% by Client 55
Total recovery effected by Client 77

Net amount released by Client 1026

Our Stand

It is understood that under the Service Tax Valuation Rules and Works Contract (Composition Scheme for Payment of Service Tax) Rules, VAT/Sales Tax is not to be included in value for purpose of Service Tax. Thus Service Tax is payable on value of work done only i.e. on net amount excluding VAT/Sales Tax from Gross value of the bill inn the transaction. As per this analogy, the above illustration should be calculated as under:

Value of Work done for which rates are inclusive of VAT/Sales Tax Rs 1000
Less: Element of MP VAT on Composite rate basis @ 5% on gross
Value of bill i.e. 1000x5/105 48

Net Value of bill or Actual value of work done 952

Add: Amount of Service Tax to be paid on value of work done @ 10.3% 98
Less: Amount of Income Tax recovered by the Client 22

Amount to be received by us from Client 1028

Thus, it can be seen that the Client is depositing Rs 7 per thousand extra towards Vat and Rs 5 per thousand towards Service Tax with the authorities and in turn we are loosing hard earned revenue.

Assistance Required:

Kindly examine the above instance and advise whether our stand is correct and what corrective measure should be taken to rectify the problem.

Thanking You

Yours Sincerely,
D.N.Upadhyay
09229210539

Our company is availing services from transporters through road.

but ,they are charging single service tax on their service bill.

is it confirmed ,they are exempted from service tax liability.

Vinay Kale

i work in a manufacturing company. we take many servies on which we pay service tax. but no credit of service tax is being taken by my company. whether service tax credit can be taken?? no output service is being provided by my company but only manufactured items are being sold. kindly mention the provision also which allows/disallows credit.

my annual turnover 50 lakh will i get a exemption of 10 lakh and pay tax for the remaining amount are i should pay for the whole amount

my annual turnover is 60lakhs how much service tax should i pay is it for the whole amount are will i get a exemption of 10lakh and pay for the remaining amount .

Please advise whether we need to pay service tax for the below mentioned purchase.

We have purchased computer components from US company amounting USD 42,536.60 which is Rs. 19,12,000 ( approx ). This purchase is basically Import of software licenses. The US company has not charged Service tax in Invoice to us as they are not registered with service tax ( Non Indian company )

1. Do we need to pay service tax on such import of software's on behalf of this company as we have used these components in the finished product on which we are charging service tax to our client , if yes on which amount do we need to pay this...here I mean upto Rest.10 Laces there is no service tax payable so do we need to pay the ST on the amount going above that ??

2) Can I take credit of service tax paid on Rent payment, Housekeeping charges, etc also against the service tax payable on this import ?

3 ) We have purchased this software in April 2010 & till date not paid service tax on this...can we pay it now ? what will be the penalty if any ??

4) We have applied for ST regn May 10 & got ST-2,however not got Registration Certificate...Do this will affect ? Can we still file the return on / before 25th Oct ?

Pls reply to this. Thanks in anticipation.
Regards,

Lalit