If the service is taxable and service provider is also have S.T registeration no.....but S.T has not been charged in bill....can we take service tax credit by gross up the total bill amount????? plz reply me soon....

Question NO. 1

We had entered into a contract for rendering consultancy job in the year 2006. According to terms of contract, client had paid advance on which we had paid the service tax on proportionate basis in the same year. The job was kept in abeyance till March, 2009. In April, 2009, the Client have unilaterally decided to conclude the contract and demanded refund of Advance amount. We, the Consultant, refunded the entire amount of advance.

Now, kindly give your expert opinion on the following:

Since we had paid service tax on the advance amount, can we get back the service tax amount from Service Tax Department even after elapse of more than two year from the date of payment of service tax.



Question NO. 2

We have entered into a contract for carrying out works contract job. The elements include Design engineering, civil construction, supply of plant & equipment, erection, commissioning etc. Our total liability of service tax on account of Design Engineering, civil construction, Erection, commissioning, etc. is double the amount of service tax provided in the contract. Our client stops releasing payment of service tax when it reaches ceiling amount provided in the contract. However, they enjoy the benefit of CENVAT credit.

The accounting system of our client is that they admit the basic price plus service tax amount and deduct the service tax amount from the payment on the pretext that the ceiling provided in the contract has crossed but take the advantage of CENVAT Credit because they admitted the service tax amount.

As per provision of CENVAT rule, if one does not pay the amount of service tax to the service provider then one can not take the benefit of CENVAT credit on account of Service Tax.

Kindly give your expert opinion.

Mr. A take work from a company to unload the wheet/rice and cement from railway wagan and load it in lorry. Wagan booked by the company. Lorry freight paid by the company. Weheter this service comes under serice tax? if so under what head?If lorry freight paid by Mr. A - what is the effect? Mr. A is authoried by the railway department for clearing work at railway good shed.

I had bank charges to the bank which contains service tax at the rate of 12.36% and we receive service from one of the sub contractor at the rate 4.12% in composition scheme.

Can i set off above service tax i.e (12.36% against 4.12% Compsition Scheme)

As per Rule 6 if a assessee is not maintaining separate record for taxable service and exempted service than he is required to pay an amount equal to 8% of exempted service provided.

But There is no clarification if an assesse is in the business of trading and also providing taxable service how much of input credit will be allowed to him for inputs.

we are payor for services received from USA company and we are paying royalty so at time of paying royalty do we need to reduce service tax from royalty ???(I donot mean TDS)
so is ther any DTAA agreement with USA for dedudtion of service tax on royalty paid??
please give me link of DTAA ..........

Dear Sir

Let's start with an e.g. Suppose there has been bill raised on M/s XYZ for providing service i.e. Service Charge Rs. 5000 and Service tax @10.30 (i.e. Rs.515)

Total billed amount Rs.5515

Question :- How it would appear in Books of Accounts on Accrual basis.

and if you are thinking of the following entry :

M/s XYZ Dr. Rs. 5515
TO Service Charges A/c Rs. 5000
To Service Tax Receivable/Payable Rs.515

By doing this, we booked service tax by that amount which we have not received actually.

But as we know service tax is payable on receipt basis and on the actually received amount. And suppose, M/s XYZ pays only Rs. 5000 as full n final settlement. Now we have to calculate Service tax back i.e. assuming service tax is included in Rs. 5000. and service tax comes to be Rs.Rs.467 instead of Rs.515

How this would be treated in books of accounts maintained on accrual basis of accounting.

Pls correct me.

Thanks in advance..

Raj

Whether service tax is applicable on Charge collect fees which is a particular percentage of freight, collected for collecting freight at destination port.




Thanks & Regards
Vandana

Our client has run a educational institute under a Public Trust under non profit basis. However those are liable to pay the service tax to its service providers.

DEAR SIR

WE ARE A TRANSPORTER AND RECEIVED FREIGHT ON GOODS CARRIER AND BILLING AGAINST GOODS RECEIPT NUMBER(GR.NO.) I WANT TO KNOW THAT IF PARTIES DEBITED AGAINST RATE DIFFERENCE OR ANY OTHER REASON THEN WHAT IS THE WAY TO ADJUST DEBIT AMOUNT IN THE SERVICE TAX RETURN COULD I DEDUCT DEBIT AMOUNT IN TOTAL FREIGHT RECEIVED OR NOT.