Dear SIr,

we paid liability under reverse charge mechanism and then take input against the same. let me know is it compulsory for input we register in the same category???

Example. we are not engaged in hire of car category but we paid st liability under reverse charge and then take input is it right????

Dear Sir,
In case of a partnership firm where business premises is in the ownership of one partner. In such case for service tax registration whether the partnership deed is sufficient for address proof or not?

Please clarify.

Dear Sir,

Please help me solve a confusion on Service Tax Rate applicable to Works Contract.

Our company has given a contract for the interior works to be done on the recently constructing building.

As per the quotation received from the party, rate of Service Tax is 8.652% ie 70%*12.36%.

Is it correct ? Can we classify the work as original contract and claim tax @ 4.944%.

Please advice.

Thanks and Regards,

CA Sajana E V

Dear all,
Our company is providing guest house at very cheap say Rs. 75 per day to guest coming to the Company. Company is registered under S.T.(renting of Immovable property) Is This amount chargeable to S.T. as it is less than Rs. 1000/-per day.(Under Negative list). Pls Share the details.

Experts,

Can service tax input credit be taken for the invoice issued prior to service tax registration.

Example,
If service tax registration is taken on 15/07/2014, and the date of purchase invoice (invoice of service received) is 03/06/2014. Can the input credit of this invoice be taken ??

Thanks/

Sir,
A Sub-Contract was allotted to me by a Contractor to Unload The Railway Wagons of Iron Ore. My Labours are not fixed and payment are made to them on Unloading job is completed.
The Firm whose Iron Ore has been unloaded pays the amount along with Service Tax to the original contractor but when the contractor makes payment he says that you are not liable to collect service tax on the sub-contract done.
I "sub-contractor" is registered with service tax.

Q.is the sub-contractor not eligible to collect service tax?

Please reply sir,

I have submited st-1 of my client (Nature of service is vehical on rent, constitute is properitorship) but due to some unsfficient documents Service tax officer sent me option for send back. but now my clent is saying service receiver is ready to pay service tax on his behalf no need to charge service tax in bill. Service receiver is Pvt company. Accountant of servicer receiver company saying we are liable to pay service tax on behalf of propriotership. Then now what is option to cancel service tax registration. please reply.

Hon'ble Delhi High Court in W.P.(C) 5957/2012 and CM No.12257/2012 had stayed the collection of service tax on legal fees.What is the present position? Whether Sections 65B(44) and 66B of the Finance Act, 1994 (as amended by the Finance Act, 2012) as well as Rule 2(1)(d)(D)(II) of the Service Tax Rules, 1994 is operative at present?

under reversal machanisam ,service received form Individual lawyer , service receipt is required to pay service tax.

what is the procedure to pay , is service tax no. is required to tax mandatory or through pan no is possible. pl explain the procedure for depositing tax in this.

what about if service received from Firm of lawyer?

I furnish my views reg. S.Tax on Director’s service for guidance, views, comments and suggestions from learned experts.

Issue: Director’s service provided to company and whether the same is taxable? If, yes whether taxability is due to implementation of Negative List of Service regime or due to Reverse Charge Mechanism?

(A) Types of Directors and how they can serve company:

(1) Whole time director: Wherein he is duty bound with dedication for overall routine functions of the company including company’s growth, legal matter, representation, financial interest, technical expertise and many more. Generally, such directors have substantial interest in company’s future. In this method Director is termed as employee of the company and Employer-Employee relation sheep exists.

(2) Part-time/Non-sitting/visiting Director: This type of directors is by ex-officio nominated or experts in some field, having specific/limited function/ responsibilities and their payment terms also are different than whole time Directors. They are given remuneration some specific amount and may be consisting of some variable amount based on their frequency of attending meeting, advise and linked with their performance or company’s performance. For example,
(a) Sale/profit based commission: In this method, Director can be termed as Commission agent of the company which is taxable under “Business Auxiliary Service”.
(b) Advise based(may linked with sale/profit): In this method, Director may be termed as Management Consultant providing Management Consultant Service
(3) Personal Capacity: There may be a case that any director, other than his nominated function, may provide any service in personal capacity For example, any service which is required to availed from market and any director is competent to provide the same, he may provide such service and raise bill in his personal capacity as individual. In such case, such amount paid him will not reflected in remuneration to the director by again individual’s party ledger.

(B) Taxability is not affected by Negative List Regime as even before that service as mentioned in Para A(2) and A(3) was taxable in Service Tax Net and CBEC have issued two circulars on the subject.
CBE&C, vide letter No. 324/Comm(ST)/2008, dated 1-12-2008 [20 STT 20 (St)], has clarified that commission paid by a company to its directors (even if linked with performance or with financial results of the company) is nothing but remuneration paid by employer to employee. The relationship between employer and employee is distinct from relationship between a service receiver and service provider. Hence, so long as activities performed are duties within the framework of terms of the employment, amount paid by employer to employee, even if termed as commission, would not be treated as commission under definition of Business Auxiliary Service and service tax would not be leviable.
This view has been reiterated and confirmed vide CBE&C Circular No. 115/09/2009-ST, dated 31-7-2009.

As held in case of Usha Martin Industries Vs. CCE, Patna [1997 (94) E.L.T. 460 (S.C.)] and Dhiren Chemical Industries Vs. Collector Of C. Ex., Vadodara [2002 (139) E.L.T. 3 (S.C.)], Departmental Circular is binding on field formation. In case, the same are contradictory to law but beneficiary to trade, the same are binding until the same are withdrawn/rescinded. Both the above referred Circulars are still live.

(C) Taxability is not affected by Reverse Charge Mechanism: Insertion of Entry 5A in Table given under Notification 30/2012-ST has nothing to do with taxability as the aspect was already existed before Negative List Regime or Reverse Charge Mechanism. Notification 30/2012-ST read with Section 68(2), STR 2(1)(d), has only changed burden of service tax payment from service provider to service receiver.