Service Tax on License Fee


27 November 2008

Dear Expert,

I working as an accountant in 'Information Technology Software" Co.
Our Co. entered into a contract with U.S.A based Co.for supply of Cheque Truncation System (CTS) Solutions which our Co.sells in India.
We are making Payment under the contract was bifurcated under three parts viz..,
1.License Fee
2.Service Fee
3.Support Fee
Our Co. has been registered with Service Tax Department for two services viz.., Business Support Service & Management Maintenance & Repair Service. Company has been filling return under above mentioned services one as service provider & other as service receiver liable to service tax.
In case of service receiver Company has paid Service Tax for Rs 30.75 Lakhs in 2006-07. Company has been claiming set-off for the amount paid against it liability.
My Query is
1.Whether Company is liable to pay Service Tax?
2.Whether Company can claim refund for Service Tax Paid.
3.Whether Company needs to pay service tax for payment in current year?

Kindly solve my query as i want to make payment in the current year.

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