Dear Sir,
I would like to know the applicability of Service tax OR Sales Tax for the below Software issues:-

1) We develop software for the Hand Held Computers and would supply customised software to the customer as per their requirement. When we bill for this customised software development only, should we charge Sales tax Or Service Tax?

2) What happens when customer wants to pay on the basis of man hours spent by our employee at his workplace for development of software? Should we charge Sales tax or Service Tax?

3) Some of our customer are ready to take Annual maintenance contract purely for Software. Should such maintenance be charged to Sales tax or Service Tax

-Siju

SERVICE TAX QUERY:

I would like to know, if members of a company engaged in MLM, are covered under Service Tax. If covered, then under which service. The companies themselves are not registered under Service Tax, and are not charging S.Tax, but some of the members have got themselves registered under service tax, and are paying service tax from their pocket. What is the legal position? If a members has to get himself registered now, then what will be the position of earlier period, when he was not registered, and had not deducted & deposited S.Tax. Pls elaborate.
I would also like to know, whether service tax will be applicable on the value of actual purchases / sales made by him from the MLM company, or on the total value of commission received by the member from MLM company as shown in form no. 16A received by him from the company.

In one of the case, Service Tax Officials were of the view that S.Tax will be applicable on the value of the commission received by the assessee. In my opinion, it should not be on the value of the commission received because MLM member gets commission not only on his working, but on the work done by his downlines, and MLM member does not even know all his downlines, and the value of the business done by them. On what basis MLM member will deposit service tax? Moreover, it will also amount to multiple collection of service tax by the department, because if we look from top to bottom, the members lower in the ladder will be common for all the members up in the ladder.

In my opinion, in order to get away with the problem of multiple taxation of the same services, the individual purchase / sales of each member of the MLM should be the criteria, and if it is below the taxable limit, then there should be NO SERVICE TAX, and if it is above the limit, the member should get himself registered and pay service tax.


Your early reply in this connection alongwith with case law if any will be highly appreciated.

Thanks,

KUMAR (FCA) DELHI.
9818722221.

kindly provide me all amendments about excise, custom and service tax for nov.09 attempt including finance act,08. if you can so please provide the same in ms-word format.

Can anyone tell me that service tax is applicable when it is passed in the financebill where as income tax is applicable from the next year

Sir,

I want 2 know that if one co. 'x' supply manpower to co. 'y'. then on which amt. they should charge ser. tax?

for Exp. - Co. x Supplies 10 security guards @ 4000/-p.m.
Total amt.- 40,000/-p.m.
ser. chgs. @ Rs.1/- per gauard
total amt.- Rs.10/-p.m.
Gross amt.- 40,010/-p.m.

So, i want to know that, whether the ser. tax charged on Rs.40,010/- or Rs.10/-
also provide me the reason behind?...

thanks in advance

My company is in installation phase and yet to start operation and yet not regeistered under excise and service tax.We have paid service tax on Construction service, bank charges etc.We have got a service job valuing more than 10 lacs.I want to know eether we can avail the service tax credit after getting registered against service tax payble on this order and to what extent.

'Z' is giving a contract to 'X' for Rs.100 with a profit margin of 5%...'X' has sub-contracted to 'Y'. After finishing contract 'Y' raised invoice to 'X' with service tax of 10.3% which comes to 110.3%. Again 'X' will invoice 'Z' with 5% profit margin and service tax of 10.3% on the total which comes to Rs.128.04...

in this case 'Z' is paying service tax twice and is getting input credit one time only....

if it is a direct contract 'Z' has to pay Rs.115.81 only but if it is sub-contract 'Z' has to pay Rs.128.04 with differential service tax of Rs.12.23.

is there anyway to reduce the service tax or one time payment...?????

URGENT

Q.1 If I am not sure about my professional fees receipt that it will cross 10lacs or not?
So should I charge SERVICE TAX from day 1 or not. & if I pay service tax and at year end my professional fees receipt does not exceed 10 lacs. Then shall I get refund of the service tax I paid?

Q.2 If for example my professional fees receipt is 13 lacs for year so should I have to pay service tax for full 13 lacs or the balance i.e 13 lacs – 10 lacs i.e only on 3 lacs. As there is rule no service tax upto 10 lacs.

Dear Sir,

Can you help me, I have a question of about Service tax related:

Servicetax is applicable on Office rent?If yes then give me Rate and How much amount on?

I have paid our office rent monthly 95,295/-

regards,
Dharmesh

A proposes to do a proprietorship business.
A is not a professional.
A proposing to render the following services to his clients :

a. PAN for Individuals, Firm, Trust, Company, etc.

b. TAN for Individuals, Firm, Trust, Company, etc.

c. Service Tax Registration / Amendment.

d. IEC Registration / Amendment.

e. Partnership Firm Registration.

f. Accounts in Tally.

g. Processing DSC.

Please let me know, under what Category of TAXABLE SERVICES, the above items will be classified.

Thanks and I look forward to receive response on the query raised.