Procedural compliances
This query is : Resolved
CA Varsha Haryan
(Querist)
17 April 2013
A Proprietor is converting his business to PVT LTD Co. He is engaged in Export of Marketing Service. His Proprietorship firm was registered with Service Tax Authorities.
1)Whether Co is required to get register under service tax act? As Export of Service is exempt.
2)Whether Co is required to get separate Service Tax No? Can they continue with their old Service Tax No?
1)Whether Co is required to get register under service tax act? As Export of Service is exempt.
2)Whether Co is required to get separate Service Tax No? Can they continue with their old Service Tax No?
17 April 2013
Dear Varsha,
I think yes. you will have to take a new registration for the company and surrender the one for the propreitorship concern.
since export of Service is exempt, even reverse charge mechanism will not apply....however, you may register and keep. the only thing is that you will have to file nil returns.
- Ankit
I think yes. you will have to take a new registration for the company and surrender the one for the propreitorship concern.
since export of Service is exempt, even reverse charge mechanism will not apply....however, you may register and keep. the only thing is that you will have to file nil returns.
- Ankit
CA Varsha Haryan
(Querist)
17 April 2013
Dear Ankit
What do you think about the status of the co? will it becomes Input Service Distributor?
If Yes they he have to get register himself right?
‘Input service distributor’ as defined under Rule 2 (m) of CENVAT Rules, 2004 means an office of the manufacturer or producer of final products or provider of output service, which receives invoices issued under rule 4A of the Service Tax Rules, 1994 towards purchases of input services and issues invoice, bill or, as the case may be, challan for the purposes of distributing the credit of service tax paid on the said services to such manufacturer or producer or provider, as the case may be.
What exactly means distribution of Input Service Tax?
Please Guide
What do you think about the status of the co? will it becomes Input Service Distributor?
If Yes they he have to get register himself right?
‘Input service distributor’ as defined under Rule 2 (m) of CENVAT Rules, 2004 means an office of the manufacturer or producer of final products or provider of output service, which receives invoices issued under rule 4A of the Service Tax Rules, 1994 towards purchases of input services and issues invoice, bill or, as the case may be, challan for the purposes of distributing the credit of service tax paid on the said services to such manufacturer or producer or provider, as the case may be.
What exactly means distribution of Input Service Tax?
Please Guide
17 April 2013
Dear Varsha,
Input Service tax is any service tax paid by you on any service, which is eventually used for the provision of final service.
say something like ST paid on phone bill etc.
but, this credit can be availed of only if the final service is taxable. since, the final service is not taxable, the credit cannot be taken....
if you have any further doubt please feel free to ask
Input Service tax is any service tax paid by you on any service, which is eventually used for the provision of final service.
say something like ST paid on phone bill etc.
but, this credit can be availed of only if the final service is taxable. since, the final service is not taxable, the credit cannot be taken....
if you have any further doubt please feel free to ask
CA Varsha Haryan
(Querist)
17 April 2013
as i mentioned company is engaged in export of service following are the list of services he generally procures
1. Advertising
2. Air Travel Agent
3. Chartered Accountant
4. Courier Service
5. Credit Card, debit Card, Charge Card or other Payment Card related Service
6. Banking and Other Financial Service
7. Telecommunication
they what will be called as distribution of service so collected and will he be eligible to claim refund of input services
1. Advertising
2. Air Travel Agent
3. Chartered Accountant
4. Courier Service
5. Credit Card, debit Card, Charge Card or other Payment Card related Service
6. Banking and Other Financial Service
7. Telecommunication
they what will be called as distribution of service so collected and will he be eligible to claim refund of input services
17 April 2013
Unfortunately, he wont be able to take the credit since the export of service is not taxable.
since, the credit can only be adjusted against the service tax payable.
since in this case, ST wont be payable, credit cannot be taken..
but no services are provided in india???
since, the credit can only be adjusted against the service tax payable.
since in this case, ST wont be payable, credit cannot be taken..
but no services are provided in india???
CA Varsha Haryan
(Querist)
17 April 2013
I am asking about refund/rebate of service tax paid by exporter of service
17 April 2013
Yes Varsha,
the rebate can be claimed, subject to the conditions of the service tax notification no 39/2012.
if you want, i can email you the notification.
the rebate can be claimed, subject to the conditions of the service tax notification no 39/2012.
if you want, i can email you the notification.
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