Facts: A company (100% EOU)exports software services to foreign clients.
As per rule 4 of export of service rules 2005, the company does not pay service tax on the export of services.
As there is no output service tax "cenvat credit" on the services utilised is not taken to current assets in the balance sheet. Instead it is charged to the profit and loss account
Now the question is: For claiming the refund of service tax on input services from the department IS IT NECESSARY THAT CENVAT CREDIT ACCOUNT HAS TO BE SHOWN IN THE BALANCE SHEET. In any case, the company would be submitting the export invoices, FIRCs, bankers certificate and vendors bills like courier, audit fees, to the department for claiming the refund of service tax on input services.

Kindly clarify the doubt

Hi all
A company which is situated in STPI under section 10A.(where 100% income is exemptfrom tax)and service tax also exempt..But as per section 66A of service tax..If any service is received from outside india by a company which has place of business in india..this STPI unit is receiving some services from outside india..So is it necessary to service tax on that.. or is there any sepcial exemption for this.. Pls help on this....Its very urgent
Thanks in advance

Please Clarify anyone-

Whether service tax is applicable for Jobwork transactions (Between 100% EOU & DTA Unit):

1) We (100%EOU),will supply the materials to the Jobworker(DTA Unit) for Conversion Work and on completion of the work, they will return the finished goods.
2) Jobworker will raise processing bill for the jobwork.
3) Recently the excise authorities raise the above issue in another unit like us and requests to pay the ST on all kind of this jobwork transaction.
4) Is there any specific rule to charge the ST on Jobwork between 100% EOU and DTA Unit?
Thanks in Advance
Varathan

Dear Sir/Madam

We are a transporter(by road) and we have a service tax regn. No. but after april 2009 we have not charged service tax in any bill because the service tax paid by consignee(service receiver) so i want to know what is the proceedure for surrender of service tax regn.No.we will submited all dues of tax in sep-09(quarter) can i submit surrender application with (apr 09-oct 09) return.(st-3)

Thanks & Regards


Rajeev Roy

my client in retail has a swiping machine. whenever he makes a sale through the credit card, the bank charges him a 1.7% commission on the amount that is credited to his account. they also used to charge service tax on the commission amount.

however, now the bank has started charging commission on the total amount credited. since ST rate is 10.3%, this makes a total cost of selling 12%, which is eroding the margin...

my query is whether the value adopted by the bank is proper.

thanks

Can anyone suggest me the case laws regarding construction of government buildings & medical institutions are exempt from service tax...

Dear Sir,

Whether Service Tax is payable on renting of Immovable Property wide Notification No. 24/2007?
There are so many Judgements of High Courts regarding this issue?

Regards,
Vivek Sachdeva

Dear Professional Colleagues,

One of my client is having Head Office registraion as Input Service distributor and factory registered with excise.

Now the Head Office issues Cenvat Invoices to Factory for cenvat taken on services bills recevived on all India basis.(Centralised Registration)

Factory is maintaining separate accounts for receipt, consumption and inventory of inputs used in the manufacture of dutiable final products and the quantity of inputs used in the manufacture of exempted goods. Accordingly fatory take CENVAT credit only on that quantity which is used in the manufacture of dutiable goods. It may also be noted that there is no any inputs which is commonly used in the manufacture of dutiable and exempted goods.

As Factory is taking full Cenvat credit in respect of the invoices raised by the Head Office and Head Office is issuing the CENVAT invoice on the basis of rule 7 and Head Office is not having any record of exempted goods with them, now how to not to claim CENVAT on services availed for exempted goods or common services on proportionate basis or Factory can claim the full cenvat.

I have some queries regarding service tax.

I am a proprietor of a Factory and i brought all my raw material from outside state by Indian Railway wagons & trasnportar's truck.

Now the query are as follows :

1) Raw material brought by Indian Railway wagons upto destination Railway station.

Mr. A works for the proprietor to load Pulses (Raw Material) in lorry from railway wagon. The proprietor pays the Lorry freight to Mr. A and MR A pays the freight to truck owner. No consignment note is made. Whether this service comes under service tax? if so under what head?
Mr.A is an individual. 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.

2) Sometimes proprietor brought Raw material (Pulses) in another station in the state by Indian Railway goods wagons and His staff loads the same in local trucks provided by the truck association the goods yard. Only challan is issued after loading. suppose freight @ Rs.60 per quintal then total freight = 200 qtls X 60 = Rs.12000/-
Out of which Rs.6000 is paid by my staff (taken from trashipment broker ) and the balance to pay.

The transhipment broker issues his bill (Truck Advance, Labour, Commision etc,) So I will be liable to pay service tax or not.if I am liable then what will be rate of Service Tax.
Only challan is issued for the delivery.

3) In road transporation the proprietor brought Raw Material from outside state.
In which bilty or COnsignment note issued and no service tax is paid by consignor or transportar. I am liable to pay the service tax or not. What will be the rate of service tax. In case service tax is paid by the consignor then what will be the treatment.

Please let me know the solution of above mentioned queries.

Kindly reply at an earliest.
Thanks
Sunil
Cell :94350-51992