Sir,
Thanks for your earlier replies
I wish you all a very happy, peaceful and prosperous New Year 2008
I have a query on Service tax on Works contract
A contractor executing a works contract also utilizes the work of a sub contractor.
Both main contractor and the sub contractor does the work involving labour, materials etc.
As per the new rules the value of works contract excludes the value of transfer of property involved in materials.
Now the situation is like this
The value of Works contract is Rs.50,00,000
The value of materials is Rs.20,00,000
The amount paid to Sub Contractor Rs.25,00,000

If I am correct, the taxable value of service for the main contractor is Rs.30,00,000 (50-20)
My query now is
1.If the amount paid to sub contractor also includes the value of materials involved, how to claim that exemption
2.Very importantly, is sub contractor also liable to pay service tax under the new rule?
3.If the sub contractor is liable, whether main contractor or the sub contractor can input tax credit in any possibility?
4.Is there any mention that even the sub contractor also liable for works contract service tax in the new rules?

Pls clarify the same.

Regards,
M.P.Arun

co op crdit society given followin srvices to its members
1-dd commission
2-prossing chargers
3-valuation of gold charges
4-building donation/bld fund
5-light bill com.from electricity board
whether co op crdit society are liable to service tax or not

recevied materials from party who are not registered in exice.they are scrap trader
job works are done in our premises total labou charges are blow taxable but some materils are laying in our premises this materials are not given back. we further processed and sold in the market our purchases are nill but sales are about rs 7 lacks whether we are liable to srvice tax.total lab charges are around rs.6 lakhs.our unit is ssi unit total exemption is rs 1.5 cores to ssi unit whether both labour charges and manufactures are clubed in srvice tax and exice pl.clerify my qury as early as possible.any notification or circulers are there pl.give me
thanks/

Hi All,

I want to know something regarding service tax.
In case of service tax, if a person in India takes services of any person who is abroad, then the service tax liability is of the service receiver.

Now if an Indian has taken the services in aborad of any agent for arranging Foreign Currency Convertible Bonds and paid the agency commission in aborad out of the funds received through FCCB.
Now the question is whether we had received the services in aborad or India?

Your earlier response will be highly appreciated

Regards,
Rajan Kapoor
CA Final Student

wether service tax shall levied on handling & transaction charges charged by a stock brokers from its clients?

We are a STPI UNit and not registered with service tax, as it not applicable. Can we get excemption of paying service tax to all our services received like, internet, mobile, telephone etc.

1. We are not charging service tax to our customers as it is export business only.
2. We do charge service tax, as it is domestic sales.

Kindly clarify.

Tamizh

we are servise provided to our customer as
a cable operator.We are paying subscrption to various channles from 2004.they are charged service tax seperately whether we are taken cenvat credit(service tax credit)on our input srvice pl.reply

Hi

One of my client is in the business of Supply of manpower for construction of building. His receipts for F.Y.2006-07 was Rs.25 Lacs. Even during this year F.Y.2007-08 his receipts already exceeded Rs.8 Lacs. Now he want to apply for ST regn.
Can anybody guide me on this issue.
From which date he should apply for ST regn? What will be the interest & penalty?
What should he do if some of his clients will not pay ST portion?
Is there any wayout?

Thanks

We asre provided manpower dor catering and various other functions by Caterer.
The amount paid to him includes Salary to the workman, statutory obligations like P.F., E.S.I., Bonus etc Admins charges @ 10 % of the total amount.
Service tax is charged on the total amount paid to the caterer.
The Act says that Service Tax should be on the Gross Amount subject to exclusion of reimbursements.
Is it right to charge Service Tax on the entire amount or should it be after excluding salary and related costs?

Whether service tax paid on bills will be allowed as expenditure. For example Telephone bill say Rs.1000/-
Service tax on the same Rs.124/- totalling Rs.1124/-Whether Rs.1124 to be debited to telephone a/c or only Rs.1000/-