Abatement of service tax

3525 views 6 replies

I am engaged in trading concern of telecom sector co. and doing business across India. I pay service tax on bills that raise by partis but not charge service tax on bills because I am not directly involved in proving services. I manage services from third parties and reimburse them. Some parties charge service tax on their claim and some do not charge as they are small service providers. FYI, I take transportation service from a logistic co. and this logistic co. charge ST on their bills. 

My question is that can I get service tax refund from the dept. although I am not paying service tax directly to the dept. (i.e. I am paying service tax on bills which raise by parties pertaining to advertisement, consultant bills, administration exp., telephone bills, rent, professional charges, freight & octroi bills etc.) or in some other ways by which I can get some benefit in this regard.

I am expecting reply of my querry from some renowned & good practitioner's side.

Thanks

Replies (6)

u can not get service tax refund as u r not providing service.

As my understanding you would like to know whether you can claim the refund of service tax paid by you to the provider of services on input service and you are not providing any service as you mentioned.

 

There is no provision under Finance Act and rules, under which you can claim refund of service tax. 

Can I adjust service tax of which I am paying on different services (i.e. I am paying service tax on bills which raise by parties pertaining to advertisement, consultant bills, administration exp., telephone bills, rent, professional charges, freight & octroi bills etc.).   (I want to adjust these service tax paid against service tax payable on transporting of goods-GTA)?

Pls. reply

Yes you can adjust any input service tax against output service tax provided such input service should be used for providing output service.

Originally posted by : Anoop

Can I adjust service tax of which I am paying on different services (i.e. I am paying service tax on bills which raise by parties pertaining to advertisement, consultant bills, administration exp., telephone bills, rent, professional charges, freight & octroi bills etc.).   (I want to adjust these service tax paid against service tax payable on transporting of goods-GTA)?

Pls. reply

No u cant set off the service tax paid on any service received, against any service tax payable by receipent, but u can set off the same against "service tax payable against taxable services provided by you"

If you paid the service tax under reverse charge like GTA, it is a input service, you can't adjust Cenvat credit against it. 

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