Query regarding non payment of service tax by client :

A raised a bill on B.

For instance, bill total value is Rs.27575/-, which consists of Rs.25000/- plus ST 10.3% Rs.2575/-.

B made payment of Rs.25000/- only without making ST payment of Rs.2575/-.

Now, A is unable to collect the balance Rs.2575/- pertaining to Service Tax from B.

Under the above circumstances, whether A has obligation to pay on his professional fees realised Rs.25000/- to Service Tax Department.

It may be noted that A has not received from B the amount Rs.2575/- pertaining to Service Tax.

Looking forward to receive the response on the matter.

Sir,
one of my client,a Individual transport operator, had engaged in the business of transport of goods i.e. Food Grain from one govt godown to another govt godown on behalf of Collector of the Distt. My question is that whether my client is doing activity liable for service tax & if yes, then who will pay the service tax, i.e. my client as GTA or the Govt. i.e. Collector of the Distt.

please reply me at : gopiasati@rediffmail.com

CA Gopal Asati
Gondia

as per provision of service tax if a service provider raised bill less than 10 lac, he is not liable to service tax?

My question is celling of 10 lacs is service wise or in total such as (consultant eng + transportation> 10lac)?

If main contracor opted for composition and paying taxes on Gross value of the work.If part of the work given to sub-contractor morethan 10 lakhs for each sub-contractor.Then what is the liability of sub-contractor. Kindly clarify

Dear Sir,
I would like to know the applicability of Service tax OR Sales Tax for the below Software issues:-

1) We develop software for the Hand Held Computers and would supply customised software to the customer as per their requirement. When we bill for this customised software development only, should we charge Sales tax Or Service Tax?

2) What happens when customer wants to pay on the basis of man hours spent by our employee at his workplace for development of software? Should we charge Sales tax or Service Tax?

3) Some of our customer are ready to take Annual maintenance contract purely for Software. Should such maintenance be charged to Sales tax or Service Tax

-Siju

SERVICE TAX QUERY:

I would like to know, if members of a company engaged in MLM, are covered under Service Tax. If covered, then under which service. The companies themselves are not registered under Service Tax, and are not charging S.Tax, but some of the members have got themselves registered under service tax, and are paying service tax from their pocket. What is the legal position? If a members has to get himself registered now, then what will be the position of earlier period, when he was not registered, and had not deducted & deposited S.Tax. Pls elaborate.
I would also like to know, whether service tax will be applicable on the value of actual purchases / sales made by him from the MLM company, or on the total value of commission received by the member from MLM company as shown in form no. 16A received by him from the company.

In one of the case, Service Tax Officials were of the view that S.Tax will be applicable on the value of the commission received by the assessee. In my opinion, it should not be on the value of the commission received because MLM member gets commission not only on his working, but on the work done by his downlines, and MLM member does not even know all his downlines, and the value of the business done by them. On what basis MLM member will deposit service tax? Moreover, it will also amount to multiple collection of service tax by the department, because if we look from top to bottom, the members lower in the ladder will be common for all the members up in the ladder.

In my opinion, in order to get away with the problem of multiple taxation of the same services, the individual purchase / sales of each member of the MLM should be the criteria, and if it is below the taxable limit, then there should be NO SERVICE TAX, and if it is above the limit, the member should get himself registered and pay service tax.


Your early reply in this connection alongwith with case law if any will be highly appreciated.

Thanks,

KUMAR (FCA) DELHI.
9818722221.

kindly provide me all amendments about excise, custom and service tax for nov.09 attempt including finance act,08. if you can so please provide the same in ms-word format.

Can anyone tell me that service tax is applicable when it is passed in the financebill where as income tax is applicable from the next year

Sir,

I want 2 know that if one co. 'x' supply manpower to co. 'y'. then on which amt. they should charge ser. tax?

for Exp. - Co. x Supplies 10 security guards @ 4000/-p.m.
Total amt.- 40,000/-p.m.
ser. chgs. @ Rs.1/- per gauard
total amt.- Rs.10/-p.m.
Gross amt.- 40,010/-p.m.

So, i want to know that, whether the ser. tax charged on Rs.40,010/- or Rs.10/-
also provide me the reason behind?...

thanks in advance

My company is in installation phase and yet to start operation and yet not regeistered under excise and service tax.We have paid service tax on Construction service, bank charges etc.We have got a service job valuing more than 10 lacs.I want to know eether we can avail the service tax credit after getting registered against service tax payble on this order and to what extent.