I hv given an interior decoration contract to one person in Karnatka. He is supplying material as well as providing labour services. I want to know that what is the rate of tax he should charge from us.

Presently he is charging 4% composite tax. As per him I m not able to take credit for the tax paid by him.

The assessee had made defalult in deducting TDS for payment made to a contractor. Subsequently the co had debited the expense a/c and credited TDS payable a/c with the TDS figure for avoiding disallowance. Whether the co is eligible to claim such TDS payment as their business expense

Is retrading or rebuttoning of tyres not on franchise taxable? If yes pls let me know under which category of service it is taxable.

When the exemption limit of 8lakhs is crossed is service tax payable on entire services rendered or only that part which exceeds 8 lakhs?

A supplier received central sales tax declaration form "C" from his customer after nearly six years. The reason for delay in issuing the form was due to suspension of factory activities on account of labour problems. During this period the supplier had completed his sales tax assessment by paying the difference tax for non-recipt of "C" form. Now that the form has been received, is there any way for refund or for adjustment of the difference tax paid? Is there any time limit? If so what is the maximum time allowed? I request our valued experts and esteemed club members to advise. - Vishvesh

I want to receive Rs.100000 as gift from my married daughter.Does the term lineal descendant include female child also as per section 2(41). Infact the word any has been used in section 2(41) but is it necessary to examine the provisions as per Hindu law.

As i AM PLANNING TO DO PRACTICE IN FUTURE ,kindly let me know the recommended books for Direct tax,Indirect tax,VAT & other audits,accounting standards and Companies act so that I can keep myself prepared for the same.

Query regarding; Can service tax credit is available on proportionate basis, If unit manufacturing excisable as well as exampted products? i explaine query by way of illustration.

We are manufacturing of dutiable and exempted products, we are availing a service of labour contractor, which is used in the manufacture of final products. Labour contractor monthly basis charged the bill with service tax for Rs.112360/- (100000 + 12360 service tax).

Now question of taking a service tax credit for the above Invoice.

For taking service tax credit, we have apply the proportionate credit method like …

We have collect the production data from our production department, like dutiable production qty 1,00,000 nos and Excisable production qty 50,000 nos, so the total nos of production is 1,50,000 nos (1,00,000+50, 000).


We are applied proportionate formula like


50,000 (Excisable production) * 12360 (Service tax credit)
-------------------------------------------
1,50,000 (Total production)

=4120 eligible service tax credit


1) IS IT CORRECT WAY TO TAKE THE SERVICE TAX CREDIT?

2) Can you provide me any Judgment to established that service tax credit cannot be taken on proportionate basis?

Note: As per my view in CC rule there is no restriction to take proportionate service tax credit, If you have, please provide me.

Please give expert views.

Regards
Vijay Chitte
Executive Taxation

Dear Friends,

We need ECB Loan from our parent company towards working capital requirement. However, bankers have denied the same saying this is not permitted by notification from RBI.

Can anyone confirm Notification details or send me copy of notification, as I have to show it to our parent company.

Can somebody provide me latest TDS rate for the A.y. 2008-09.

whts the diff b/w prospectus and red herring prospectus.