I have submited st-1 of my client (Nature of service is vehical on rent, constitute is properitorship) but due to some unsfficient documents Service tax officer sent me option for send back. but now my clent is saying service receiver is ready to pay service tax on his behalf no need to charge service tax in bill. Service receiver is Pvt company. Accountant of servicer receiver company saying we are liable to pay service tax on behalf of propriotership. Then now what is option to cancel service tax registration. please reply.

Hon'ble Delhi High Court in W.P.(C) 5957/2012 and CM No.12257/2012 had stayed the collection of service tax on legal fees.What is the present position? Whether Sections 65B(44) and 66B of the Finance Act, 1994 (as amended by the Finance Act, 2012) as well as Rule 2(1)(d)(D)(II) of the Service Tax Rules, 1994 is operative at present?

under reversal machanisam ,service received form Individual lawyer , service receipt is required to pay service tax.

what is the procedure to pay , is service tax no. is required to tax mandatory or through pan no is possible. pl explain the procedure for depositing tax in this.

what about if service received from Firm of lawyer?

I furnish my views reg. S.Tax on Director’s service for guidance, views, comments and suggestions from learned experts.

Issue: Director’s service provided to company and whether the same is taxable? If, yes whether taxability is due to implementation of Negative List of Service regime or due to Reverse Charge Mechanism?

(A) Types of Directors and how they can serve company:

(1) Whole time director: Wherein he is duty bound with dedication for overall routine functions of the company including company’s growth, legal matter, representation, financial interest, technical expertise and many more. Generally, such directors have substantial interest in company’s future. In this method Director is termed as employee of the company and Employer-Employee relation sheep exists.

(2) Part-time/Non-sitting/visiting Director: This type of directors is by ex-officio nominated or experts in some field, having specific/limited function/ responsibilities and their payment terms also are different than whole time Directors. They are given remuneration some specific amount and may be consisting of some variable amount based on their frequency of attending meeting, advise and linked with their performance or company’s performance. For example,
(a) Sale/profit based commission: In this method, Director can be termed as Commission agent of the company which is taxable under “Business Auxiliary Service”.
(b) Advise based(may linked with sale/profit): In this method, Director may be termed as Management Consultant providing Management Consultant Service
(3) Personal Capacity: There may be a case that any director, other than his nominated function, may provide any service in personal capacity For example, any service which is required to availed from market and any director is competent to provide the same, he may provide such service and raise bill in his personal capacity as individual. In such case, such amount paid him will not reflected in remuneration to the director by again individual’s party ledger.

(B) Taxability is not affected by Negative List Regime as even before that service as mentioned in Para A(2) and A(3) was taxable in Service Tax Net and CBEC have issued two circulars on the subject.
CBE&C, vide letter No. 324/Comm(ST)/2008, dated 1-12-2008 [20 STT 20 (St)], has clarified that commission paid by a company to its directors (even if linked with performance or with financial results of the company) is nothing but remuneration paid by employer to employee. The relationship between employer and employee is distinct from relationship between a service receiver and service provider. Hence, so long as activities performed are duties within the framework of terms of the employment, amount paid by employer to employee, even if termed as commission, would not be treated as commission under definition of Business Auxiliary Service and service tax would not be leviable.
This view has been reiterated and confirmed vide CBE&C Circular No. 115/09/2009-ST, dated 31-7-2009.

As held in case of Usha Martin Industries Vs. CCE, Patna [1997 (94) E.L.T. 460 (S.C.)] and Dhiren Chemical Industries Vs. Collector Of C. Ex., Vadodara [2002 (139) E.L.T. 3 (S.C.)], Departmental Circular is binding on field formation. In case, the same are contradictory to law but beneficiary to trade, the same are binding until the same are withdrawn/rescinded. Both the above referred Circulars are still live.

(C) Taxability is not affected by Reverse Charge Mechanism: Insertion of Entry 5A in Table given under Notification 30/2012-ST has nothing to do with taxability as the aspect was already existed before Negative List Regime or Reverse Charge Mechanism. Notification 30/2012-ST read with Section 68(2), STR 2(1)(d), has only changed burden of service tax payment from service provider to service receiver.

I need confirmation for the below,

If PY turnover is less than 60 lacs - 15% interst is for delay in payment of service tax. if PY turnover is more than 60 lacs - 18% interest is for delay in payment of service tax...

Can anybody confirm the above is correct.

Dear all,

please tell me about is service tax applicable in jammu & kashmir if Service Provided & consumed in jammu & kashmir ,and for the same a West Bengal party raised the invoice to A delhi party . So service consumed in Jammu & kashmir but bill to another state then Service tax chargeable or not ?

In FY 2014-15 we are covered in Negative list in first half only upto 30.09.2014.

from 01-10-2014 our service is taxable.

our october revenue around Rs. 35 lacs. can we claim exemption limit of Rs. 10 lacs or not.

can we can raise invoice without charging service tax amounting to Rs. 10 lac.

Please suggest me with reference to any notification / particular section.

Dear Sir, we are providing paper ad agency service. and we are collecting service tax. But our turnover is below exemption limit . What to do now.

Company Making a agreement with SSP as value of contact including all taxes and at the time of payment to SSP company deducting the ST portion from the invoice (coz SSP didn?t having ST registration no.) and that ST portion not paying to govt and not taking the credit in the books. Has this practice is right as per Finance act, 1994.Plz find below the example of query For e.g.XYZ ltd. made a Service agreement with M/s B (SSP) for the Rs.10000 which includes all taxes. Later, M/s B raised a invoice of Rs.10000 but at the time of payment XYZ ltd. Paid only Rs.8900 and rest amount of Rs.1100 deducted from invoice as service tax because M/s B did not having ST registration no. and this Rs.1100 not deposited to govt or not accounted in books. Has this is right practice. Plz advice me whether company doing right practice or not?? Plz share with me the notification regarding this case.

i explain my problem through example.

AMV consultancy receive a contract from HUL for booking a hotel as par requirement of HUL at various location in india on 5% commission . AMV book a hotal and arrange other facilities from outside the hotel like leptop, projector, cake and chocolate. After completion of meeting AMV receive 2 Invoice in own name, one from Hotal which include service tax i.e Rs 30662 ( Rs 25000+Vat@14% Rs 3500+Service Tax@8.65%Rs 2162) and another from other without service tax i.e Rs 10000.

After which AMV issue a invoice to HUL like this format
HOTAL EXP.(25000+3500+1500) 30000
Projector on rent +Cake 10000
Commission on Rs(38500) 2000

Service Tax @12.36% on Rs(42000) 5191
Total Bill Value 47191


As per my thinking that is not a pure agent service because we add extra of Rs 1500. we paid Rs 3029 to service tax department after claiming cenvat credit of Rs 2162.


My Question is this
1. Can we liable to deduct tds on payment made to hotel and other vendor if yes then under which category?

2. Can the format of issuing invoice is correct or not if not than what is correct format ?

3. Can service Tax is applicable only on commission value or on full value of invoice?

kindly explain