Levy of service tax under negative list

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This query is : Resolved

Jatin Jain (Querist)

29 August 2012 Kindly clarify whether Service Tax is payable or not: -

1. When a person is rendering services which are taxable and in negative list, whether for considering exemption limit of Rs. 10 lacs, only the taxable services should be considered.
2. We are paying subsidy to the canteen contractor for running the canteen. Whether he is liable for service tax thereon?
3. Interest on security deposit received from dealers is not taxable as in negative list.
4. Packing charges and insurance charges collected in sales invoice for goods sold. Whether taxable?
5. Service Tax will be leviable on Directors fees and expenses like traveling reimbursed to them on reverse charge basis. If the air ticket for travel of Director for Company's work is arranged and paid for by the company directly to the travel agent, then service tax will be collected by the travel agent and the company will have no liability thereon on reverse charge basis.

Thanks a lot.

CA Ayush Agarwal

CA Ayush Agarwal (Expert)

29 August 2012 1. Yes, Only Taxable Services to be Considered for Taxability of 10 Lacs to Check Whether U R Under SSP or Not. But For registeration 9 Lacs, All Services is to be Considered.
2. Yes
3. If in Negative List Then Not Taxable
4.In My Perception, No
5.Yes No Liability of Co.