Hi
A propreitorship firm of interior decorator raised bill of 10000( material & Labour) then added vat say 2% i.e. 200 = 10200 . then add designing & drawing charges say 4%( on 10000) i/e.400 and then charges service tax 10.3% (on 400) i.e. 41 and service tax of Rs. 41 is deposited with Dept.
is this correct , if not pl. inform correct procedure

One party has prepared the invoice showing as "invoice for the month of march". In which it is also written that date of commencment of services 20.01.2009 and date of completion 30.03.2009.
It is not possible to get new invoice from party.
Is service tax rate will be 12.36% or 10.30% for this invoice?

Dear Experts,

We are hiring a goods carriage to transport our despatches to our customers and we pay freight on the basis of KM ran.We transit in a single carriage for multiple customers at a time. My query is what will be the abatement amount can be claimed (1) Rs.750/- or (2) Rs.1500.00

Thanks in advance

Praveeri

Our company are in the business of printing our own advertising directory and magazines,manufacturers of diares for corporates,printing of annual reports etc.we also taking job work of printing others magazones etc.

we are registor under service tax as we have to charge service tax on Advtisement services to our customer who wish to give advertisemnet in our directory.our directory are distibuted on demand to anybody without any cost.
this directory is printed in our own factory only.we have to pay excise duty on paper,inks,and various consumable,disel and stores and spares etc.for printing this directory.We are treating the excise duty as a part of our total material and consumable cost.
We are not registered under Central Excise Act.

Query:

1) Can we take credit of Excise duty and utilise the same against service tax liability for our directory (under the category of sale of Space or time for Advertisement)

If we can take these credit please provide us the procedure and format of records to be maintained.

2) Can we correct our past records and intimate the department to avail the excise duty credit which we have not taken till date.



3)Please also confirm whether "printing of directory, Magazines, Catalogue etc. is not a manufacturing activity as per Excise and therefore exempt. Or it is excisable activity but subject to 0% excise duty.



Regards,

I agree that as per Service Tax rules if Abatement is claimed, Cenvat Credit can not be availed.

However I have a genuine query, which I would like to clarify, with the following example-

Suppose I provide a Tour Package worth Rs. 1 Lac, for which I charge my clients Service Tax/ Cess @ 2.58% of the Package Value (Rs. 2580/-). (Means my total Invoice Amount is Rs. 102,580)

Now, I take some of the Ground Services from my Sub Agent (worth Rs. 50,000/-), for which he issues an Invoice in favour of our company and charges Service Tax/ Cess @ 2.58% of the value of Service provided (in this case- Rs. 1290/-).

Now my question is that I have charged my client Rs. 2580 as Service Tax/ Cess. Out of which I have already paid Rs. 1290/- to my Sub Agent as Service Tax/ Cess.

So the remaining amount of Service Tax/ Cess with me is only Rs. 1290/-.

Now as per your reply, because I have claimed the Abatement, I should pay the full amount of Rs. 2580 as Service Tax/ Cess (whereas I'm left with only Rs. 1290).

SO SHOULD I PAY RS. 1290/- OUT OF MY OWN POCKET (Reducing my Genuine Profit Margins)???

KINDLY ADVISE !!

Regds....Anurag

Hello ! Freinds
In case of Goods Tranport by road recepient of service is liable to pay the Service Tax. But, for the purpose of registration or to decide the liability to pay whose turnover is to be considered Whether the transporter or the receiver. And how it is to be Calculated.
What if the turnover of either of the two exceeds Rs. 10lacs and other one is below taxable.

Thanks and Regards

Gourav Mehta

We pays rent of Rs.22000/month. Owner is not agreing to deduct any taxes. Do we need to deduct any service Taxes, or TDS from him?. if he is not agreeing, what is the impact of it?

Dear Group Members,
We forgot to pay service tax liability for the month of march 09 which was to be paid upto 31st march 09. Can any one tell me about the INTEREST & PENALTY consequences separately.

Dear Sir / Madam

Greetings of the Day !

My company carries the Hospitality Business & have Service Apartments Hotels.

We need the opinion on the following points regarding the service tax.

Present Tax Structure for the Banquet hall with the food supply

PRESENT TAX STRUCTURE FOR BANQUETS
PARTICULARS AMOUNT SERVICE CHG. SERVICE TAX VAT TOTAL TAX INCL. SERVICE CHGS
FOOD 100.00 5.00 6.48 13.13 24.61%
SOFTDRINK 100.00 5.00 6.48 13.13 24.61%
LIQOUR 100.00 5.00 6.48 21.00 32.48%
MISC. 100.00 5.00 10.81 0.00 15.81%

• 40% abetment is taken on F & B for Service Tax.
• Vat charged on Full F & B including service charge
• No abetment is taken on Misc. under convention

In the above case the total tax comes to 24.61% on F&B & 32.48% on liquor which is very high.
Even we cannot take Service Tax Input Credit being the abatement taken.

We need the opinion in the above case:

• Can we make one bill defining the service (hall rental) & food sale with the respective taxes ?

• What will be the basis for service : sale ?

• Can we split the bill for service (hall rental) & food sale? If we can split the bill what will be the basis for services : sale.

• In case of Out Door Catering what will be the tax structure.
• Can we take input credit on misc., its been fully taxed

Please reply with the details so that all the confusion gets over. Thanks in advance

BY MISTAKE ASSESSEE HAS PAY EXCESS PAID SERVICE TAX SO,HOW I WILL DISCLOSE IN FORM NO. ST-3 AN EXCESS AMOUNT IN WHICH COLUMN?