A private Ltd Company into 100% Export of Softwaer/IT enabled services Since no Service tax is payable export of Service Tax paid by it on various input Services like internet Leasline Expences, Telephpne Exp. & Proffosional charges etc.

Our company provides commission to foreign agents for getting the construction contracts abroad. As per the agreement, whenever Running Bill of contract invoice in respect of such oversees contracts are raised, the agreed percentage of commission on contract value is accounted for on the proportion of such RA bill. Such commission is accounted for on the basis of current exchange rate basis.

However, at the time of payment of such commission, the company has to pay more and sometime, less also. For example, the company has booked sale invoice of Rs. 10 lacs dollar upon which commission was booked @ 5% viz. 50,000/- US dollar @ Rs. 45 per USD. Therefore, the commission was booked at Rs. 22.50 lacs in accounts. However, at the time of actual payment of such commission, the rate of USD was Rs. 46 and therefore, the additional Rs. 50,000/- was accounted for under F/E fluctuations A/c.

Now, since such commission is covered under business Auxiliary Service, the company will have to pay Service Tax U/s 66A of Import of Service.

Please reply whether the company should pay Service tax on Rs. 22.50 lacs only or should pay on additionally paid Rs. 50,000/- also. What would be the case, if the rupee improves against dollar and company pay commission of Rs. 22 lacs @ Rs. 44/- per USD. In such a case, should company pay Service Tax on only Rs. 22 lacs.

Please study and reply the same and substantiate your reply on the basis of Rules or regultations issued under Service tax or any cout pronouncements.

my client is a factory and has entered into agreement with some agencies to process goods and transport the finished goods to agency. the transportation charges for this both inward and outward are paid by factory but reimbursed by agency after completion. who is liable for service tax on gta whether factory or agency?
supportive legal provision is appreciated

Thanks for your repvious information, i also want to know which kind of documents we need to get service tax refund.

Dear Experts. One of my clients is Manufacturer of utensils they are retailer as well as exporter. they are charged with service tax for ocean freight and clearing & forwarding charget etc. whether they can get refund of the same? whether they can ask the service provider not to charge service tax? Pls clarify.Thanks in advance.

Hello Freinds,

I would like to know the rates of Service Tax; Cess & S.H.E.Cess ans its effective date from Apr 2005 to Mar 2006; Apr 2006 to Mar 2007; Apr 2007 to Mar 2008 and Apr 2008 onwards.

Our is basically a private company that exports raw materials(which we buy in India) to some of our UK clients. We dont sell anything in India. But now we are about to do some services(out sourcing services) to one of our Indian clients. So should we charge service tax on it.
Say that all the income we get from rendering such services does not exceed Rs 5 lakhs.

Please help me in this issue.


Thanks & Regards
Arihanth

I want to know about those input services taxes, which are not eligible for input credit under cenvat(full list)

Thank you,
Balakrishna

A Company Provided De coiling Services to SAIL. Is it necessary for it to Charge Service tax in the Invoice. Is there any excemption with respect to this. Please help.

Advance thanks,
Manikandan.A.V

Dear Sir,

Pls. tell our company Rent Bill raise to party & service tax charge in bill and we also paid rent to another party there bill in also service tax mentioned then can we take input credit or not ?

second question is we know below 10 lac service tax is exempt but if this amount increase 10 lac then my liabilty on which amount ?


Thanks