Dear All,
Please try to solve this query.
We are consignment agents for one of the companies in south. We keep stocks on behalf of the company & the co. provides us comission (about 3% on sales value). The total comission doesnt exceed 3.5 lakhs in a year. The responsibility of the sales & collection is completely ours.

We used to pay service tax before (have registeration as clearing & forwarding agents) & when we learnt about the exemption limits (now 10 lakhs, earlier 8L & earlier than that 4 lakhs), we stopped paying, but we still file the returns on normal dates.

Now, we went to department for cancellation of our registration as the comission is far below the exemption limit. But, the department says that we are liable for service tax & no exemption is available for C & F agents.

Please advice on the above,

Thanking you

Is there any provision in the service tax law for filing a revised return which has already been revised? So as to correct the cenvat credit details given wrongly in the revised return which was earlier filed in time?
If no provisions are there what will be the consequences if the cenvat credit closing balance shown in March 08 return is different from the opening bal in April 08 while filing Sept 08 return?

1.warranty spares:
During the warranty period, the dealer doing warranty service as per agreement for customer for serivcing & replacing parts on free of cost. I know service tax leviable on service portion of work ie labour charges. As per service tax circular, parts sales are exempt if documentary proof exit for sale of spares separately in invoice. In this case spares not sold. Actually no gain araised on reimbursement of warranty spares. Please explain with details whether warranty spares are liable for service tax?

2. Management, maintenance or repair work
Contract work involve material and labour.
vat paid on material sales. whether materila value is included in assessble value for service tax.
Please clarify with detials
Adv. thanks from

Raghu.

Dear All.

I am working as an accountant in a Ltd Co.,

The day i took charge of the assignemnt, Our company was preparing, paying tax,if any as service provider and filing data for hlf yearly return under Service Tax Act on the basis of sales bills raised i:e mecantile system since registration.

I hv not change the methodolgy, since i dont find any reason to change., infact from the day i took the above assignemnt, we hv never paid service tax on services rendered by our company and hv been adjusting against service tax payment against set off available.

further officer in charge at that time hv justify his stand by reasoning that by paying service tax as and when bill are raised, it can save time for preparing unnecessary data and reconcilaition statement every month, since data is readily available from sales bills raised and accounted in books secondly there is no cash outflow for the company , since set off amount at our disposal, hence why spend time on unproductive information for filing return under service tax.

But when my new account's manager took charge, she told me to file Service Tax on Cash Basis as per Under Service Tax Rules 1994.

Rule 6: Payment of service tax
The service tax shall be paid to the credit of the central govt by the 5th of the month immediately following the calender month in which payments are received , towards value of taxable service.

But when i explain this to my manager that Corollary is payment of service tax to govt can be deferred till the receipt of the value of taxable services provided however i:e one can still opt and their is no barred for the assessee to make payment of tax on as and when billed. In such case dept will never make any fuss nor can raise any demand nor any notice on the subject matter

She is not aggreing with me and asking for the notification of which ST can be paid on mercantile method

Can any one give me the notification which state that ST can be paid on Mercantile Method

Regds
Jayaraman

dear All

I want to undstand the new formula given in finance Act 200

HI Experts

One of my client is an technological based company
they sale their their products as well as provide AMC(service) to their clients

They issue different bills to their for the goods & for the AMC(SERVICE INCLUDING SERVICE TAX )they provide
but their client give them the payment in lump sum amount .
The general credit period provided by the company is 3-4 months

EXample of the Query

GOODS SOLD to A in april Rs50000
AMC Provided to A in april Rs20000


After 3-4 months A gives my client a check of some amt say Rs 65000

.....
more goods as well as services are bieng provided to A during this period of 3-4 months.

MY QUERY :- HOW TO DIFFERENTIATE THE AMOUNT RECD FROM A BETWEEN GOODS & SERVICE PROVIDED
WHAT AMOUNT OF SERVICE TAX IS BEING PAID BY A

THANKS IN ADVANCE
WAITING FOR YOUR REPLY

I am going to apply for service tax registration number. can i take single registration number for more than one service????

We got civil contract for Rs.623 Lakhs in MP. My boss asked me the impact of VAT /WCT/Service Tax & How can We benefit from this? I arraived material cost of 127lakhs, Direct Cost-272lakhs & Overheads-156Lakhs. I Calculated Input VAT & Output Vat.Here I am unable to know WCT & Service Tax % & value. Moreover my client deducting wct-2% in the payment. Is it elegible for Input tax. Plz help me how to go about?

at what time service tax is charge 1)at the of receipt of consideration OR 2)at the time of raising of bill

I wish to know if an imported 'readymade' application software either in 'digital/non-physical' form or 'boxed' form from USA/UK, when sold in India, does 'Service Tax' need to be charged to the buyers ?

As I understand, 'Tally' is also a readymade application software and buyers of Tally are charged only VAT @ 4% and not Service Tax.

Awaiting expert opinions.

Thanks.

G. Prakash