Services tax
This query is : Resolved
14 September 2013
Sir
I want know what is the services tax.
how services tax input in excise
which type benefit we take in excise.
I want know what is the services tax.
how services tax input in excise
which type benefit we take in excise.
14 September 2013
Service tax in simple language means Tax on Providing Service.
One need to understand what is "Service"
In today's world for a laymen, any business OR profession where there is NO Sale of any Goods, will possible fall under the Service tax net. (Except few services mentioned in Negative List)
Credit of Service tax in Excise:
If you are a 'manufacturer' of any Goods, then you are liable to pay Excise duty.
Now if you have taken the service for the purpose of manufacturing of goods where invoice includes Service tax element, then while paying your Excide Duty you can reduce the amount you have paid as service tax.
Benefit under CENVAT:
As mentioned above your overall liability to pay excise gets reduced while removing goods(to the extent of Service tax credit you have)
I suggest you seek the advice from any professional before taking credit of Service Tax.
One need to understand what is "Service"
In today's world for a laymen, any business OR profession where there is NO Sale of any Goods, will possible fall under the Service tax net. (Except few services mentioned in Negative List)
Credit of Service tax in Excise:
If you are a 'manufacturer' of any Goods, then you are liable to pay Excise duty.
Now if you have taken the service for the purpose of manufacturing of goods where invoice includes Service tax element, then while paying your Excide Duty you can reduce the amount you have paid as service tax.
Benefit under CENVAT:
As mentioned above your overall liability to pay excise gets reduced while removing goods(to the extent of Service tax credit you have)
I suggest you seek the advice from any professional before taking credit of Service Tax.
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