We are currently registered under Business Auxiliary Services.
We have raise bill in month of Oct where we have charged service tax @12.36%
But we get payment only 50% of service tax as the client told us that balance liability is ours from July 2012 since bill involve material and labour both and fall in category Work contract.
Now our question is :
1. Whether we have to amend our existing registration certificate as it includes Business auxiliary service only.
2. Whether the invoice raised should be changed. if yes how we have to show the liability of service receiver.

if a service provider is a Company (Pvt Ltd) will the reverse mechanism benefits of 25% and 75% will be available to the company?

Dear Sir / Ma'am,

My cousin brother is running a proprietary company in Mumbai (mira road to b precise) & its a job works (meaning the company gets metals from customers & polishes it & sends them back). Now in this entire process they hav to purchase chemicals & water & color for the entire process. He charges 5% VAT on sales & his turnover from July 2012 (date of inception of the company) till date is more then 10 lacs.

My question to you is, whether he shud apply for service tax?

Suppose I am importing certain services which are subject to service tax in INdia under reverse charge mechanism. On these services, the payments are made as under :

Service charges Rs. 100
TDS on above (paid over & above the above & not deducted from the service charges) Rs. 11

In normal cases service tax under reverse charge mechanism is to be paid on the total value of services (including any withheld taxes). So suppose in above case Rs. 100/- being invoice value, we deducted taxes of Rs. 10/- & pay Rs. 90/- to the service provider, then service tax is to be paid on Rs. 100/- & not on Rs. 90/-. But in the present case, nothing is withheld from the invoice value but TDS is paid over & above the invoice value.

Query : In this case will service tax be paid on Rs. 100/- (i.e. invoice value) or on 111/- (i.e. invoice value plus TDS)?

Dear Sir/Madam,

As per Notification No. 15/2012; @ 25% of Service Tax is payable by Service Provider and @ 75 % Service Receiver.

The quarry is:

Can Service Receiver pay this 75% share to the Service Provider for on going payment to Service Tax Department.

As per agreement 25% of S.T. is also being reimbursed to the Service Provider. Can 75% Component also be paid through Service Provider by Reimbursement to him.

If Body corporate is providing service under works contract & supply of man power to body corporate, is service tax applicable under reverse charge mechanism?

Hi all, one of my friend had opened an institute for giving training to the chess players and wants to get himself registered for service tax, please tell me the practical procedure for getting registration and what are the requirement he has to fulfill along with ST -1 form with requisition fees

Dear Expert

We dismantled the one of the old column (made of steel) of our factory shed and replaced the same with new column, the service provider has charged service tax for the above service.whether we are eligible to take credit of the same under renovation of factory shed.

The Central Excise official says this service is not eligible for cenvat as renovation as it is a part of the construction activity which is excluded from input service defination.

kindly clarify

Service tax charged by hotels/restaraunts is to be charged on what value..?? they also charge VAT on their bills...so service tax is to charged on only the value of services or value including VAT.

Also there is abatement in case of hotels, that abatement is to be claimed on what value?? value of services or value of the total bill??

We are in the business of selling artificial sugar substitute. we have dedicated third party manufacturer from whom we purchase our finished product as per our specification & sell it in market.We have also engaged a manpower recruiting organisation to provide us manpower who are on their payroll but working for us. For every month we are paying to the manpower provider including the service tax on their invoice. My question can we get the credit on the service tax that we are paying for manpower service ?