we have doing Freight Forwarding business, We have both Purchase & selling of Sea Freight charges the amount over purhcase is our profit. But service tax dept. demanded to pay service on excess colleciton, Kindly advice in this regards

Facts of The case:

1) We are ABC Pvt. Ltd.(the Company) a Corporate Travel Company. We enter into contracts with corporate and manage their travel requirements as per the contract.
2) XYZ Ltd. is a Swiss Company (The Customer) having a place of business at Chennai in India.
3) The Customer is a big group with many separate legal entities in different countries
4) The Company is entering into a contract with the Customer’s Chennai entity to manage the travel requirements of group companies in 17 countries. The company will manage the travel needs of many group entities however the contract will be with Chennai entity only.
5) Travel requisition will come either from the respective locations/users or from Chennai office of the Customer.
6) Services will be provided from India but will be used outside India.
7) Invoice will be raised by the Company to receptive group entities in different countries directly not through Chennai entity.
8) Payment will be received from respective entities in convertible foreign exchange directly to us.
9) Payment can be done through cards or remittances.
10) While making bookings for the customers, the company will pay to different vendors/consolidators in foreign countries in convertible foreign exchange either through credit cards or through bank remittance..

Queries:

1) Can the company raise invoices in foreign currency to entities with which the Company doesn’t have any contract?
2) What are the tax implications specially service tax and with holding tax.
3) What are the formalities for payment to vendors? Do we need to have contract for paying to vendors or we can pay on the basis of bills/invoices by the vendors ( which may be hotels, Air tickets consolidators or other travel agents in foreign countries.

Dear Freidns

What is place of providing of service is assued in case of transpoters for service tax.
in a company is situated in jammu and it purchases and sales goods from all over india whether Service tax on freight inward or outward will be applicable of not?

Place of providing of service in above case will of originating station or Destination place.

Kindly clearify

Dear Sir,

One of our clients is a registered service tax provider registered under the category “Construction Services In Respect Of Commercial Or Industrial Buildings And Civil Structures”
He deals in works contract business. He charges sales tax (VAT) @ 2% and paying it. He charges 10.3% service tax on 33% of the value (Without VAT compliment). He engages in certain cases service tax providers who has carried out pure labor as well as Works contract and charged service tax.

The question is:

1. Whether the client can avoid the service tax paid?
2. Whether the service tax charged without VAT is correct?

Please clarify.

Dear Sir,

One company has paid GTA @ 100% and taken 100% Gta credit from April08 to April 09.What will be the outcome of this case.whether the excess 75% credit be reversed and same be refunded or the excess payment be sett off against future servicet tax liability

Dear all,

we are a Pvt ltd co. 100 % EOU registered with STPI & dealing in software export for last 8 years.

We dont have any service tax registration as we are not liable to charge ST on software export.

But we are paying service taxes on various direct or indirect inputs. We are paying ST vide our vendor's bills pertaining to professional services / audit fees / rent / internet services/ tele services other staff welfare activities etc. etc..

How can we claim refund on the service tax paid over the past years.... ?

Can you elaborate with appropriate circular & notification references. ???

its urgent.

Subhash Jha

Sir,

One of the invoiceing requirements in Service Tax is that invoice should be raised not later than 14days from the date of completion of service/receipt of money, whichever is earlier.

Now my query is what "what are the implications if an Indian company does raise invoice lately (after 14days)".


Thanks & Regards
Arihanth

We are providing our employees mobiles upto limit Rs. 500/- and rest amount of bill will be debited Employee's salary account. So please clarify me can we take service tax credit on whole amount of bill or upto limit.

Bhoop Singh

what should be the minimum amount of freight inward invoice(bill)to charge service tax?

One of our client is a registered trust and it is running a hospital.

My question is whether they will be liable to pay service tax if value of taxable service exceeds Rs. 1000000/- eventhough it is trust?