Dear sir,

I want to know can, a company engaged in general insurance business who receives service tax on premium collected and pays service tax on agency commission,take service tax credit on any other supplier's invoice? e.g.if invoice received from stationer and he charges service tax in his invoice.Is this S.T. eligible for s.t.credit?


Rahul Mathur

Facts ::
If an Assessee owing to misinterpretation of an Exemption Notification under Fin. Act, 1994, billed in Sept. 2007 only to the extent of Rs. 100000/- without Service Tax component.
Total collection in Sept.07 out of the aforesaid bill is to the tune of Rs. 50000/-
The ST-3 in relation to the Taxable Services have already been filed for HYE Sept. 2007 showing Exempted services billed Rs. 100000/-.

Thereafter, while verifying the Half Year ended March 2008, an Auditor becomes aware about the Non-eiligibility of Exmpn. Notn. & thus the, Non-levy as well as Non-payt. of ST for HYE Sept. 2007.

Query :
what should be the Date of Invoice for billing the Customer for the ST component of Rs. 12360/-
Whether ST-3 for HYE Sept. 2007 can be revised ?
What will be the consequences of the Non-levy as well as Non-payt. of ST for HYE Sept. 2007.
What would be the manner of Disclosure in ST-3 for Both HYE.

Thanks & Regards,

Service tax charged by Subcontractor in Bill .

In this case should we pay serice tax on behalf of subcontractor and issue him certificate stating that service tax paid by us on behlaf of him.

Please solve the query.

my query is that is excess service tax payment against a particular service is adjusted against the same service/ other service can be adjusted ? if it is what is the process ?

I have a query regarding application of Service Tax Provisions in case of person engaged in providing service of painting of walls etc. for advertisement and also construction of buildings for office and residential use of employees of a particular organisation.Can he raise one bill for the same.
Please clarify under which service it will fall and whether there is any exemption in respect of construction of residential houses for employees.

as per relevant notification a job worker is not required to charge service tax/ excise on job work charges if the final product is excisable. but if a job worker clears material to a unit which is exempt from excise then what should be the treatment for service tax/ excise

Parent Company issuing rawmaterials, stores and incure other expenses for manufacturing final product by its subsidiary, and the final product is not excisable, final product
come back to parent company and parent company paying processing charges to subsidiary, my question is whether its a business auxiliary service and whether service tax is applicable..... expecting reply soon....... thank u.

A very funny situation has arisen. One of my clients, a mailing agency, has been asked to remit service tax on the postage franked for his clients by franking machines licensed by Post Office. The franking of postage is in lieu of physical stamp being affixed. The Indian post office Act says that it is a "duty" levied for transmission. In the account books of all business concerns, the postage is "liquid assets". The post office 'sells' postage, which means it is goods.
Further the TRU cell of Service Tax has notified that the basic mail services (which includes franking) of post office are exempted from ST. The post office also undertakes franking like mailing agency and charges different rates without any Service Tax.
I feel that the demand of Service Tax authorities that ST must be paid on the postage franked by my client is not valid.
What do the experts say? I am anxious.
S.Krishnamoorthy

In case a person owns two properties one in delhi and one in sonepat, whether separate registration is requires or he can take one registration for both the properties.

Is a party engaged in assembling of elevators and escalators liable for service tax or VAT.If so, kindly let me know the relevant section and circular.
The party supplies the material also.