CST on Service Tax

Queries 5593 views 12 replies

One of our vendor is claiming CST on service tax. Can the vendor claim the CST on service tax?

Replies (12)

How can it possible?????? Tax on Tax (Tax ke uppar Tax).....Who has teached him (Vendor's Accountant) to do like that?????

Wah bhai wah,service tax k upar CST.. Someone go and tell him CST is charged on Goods which is defined as

includes all materials, articles, commodities and all other kinds of movable property, but does not include newspapers, actionable claims, stocks, shares and securities

Whereas service tax is charged on service  provided

please share the invoice details, i assume you are discussing the WCT on which service tax as well as CST both are chargable.
Originally posted by : Harpreet

How can it possible?????? Tax on Tax (Tax ke uppar Tax).....Who has teached him (Vendor's Accountant) to do like that?????

I know this is bit rediculous to charge CST on ST (if it is CST so..)...

but there is a practice to charge TAX ON TAX (Tax k upar tax) in few cases..

But CST On ST is too much...:) :)

how can CST BE CHARGED ON SERVICE TAX ?     CST IN A INDIRECT TAX WHICH IS LEVIED ON INTER STATE SALES IN THE COURSE OF INTER STATE TRADE /COMMERCE

If the contract is one of WC where both applicable, both the transfer and service are simulatanously provided. Therefore CST on ST not legal.

 

 

 

I blv WC service covered only specified contract where Vat/Sales Tax paid on Works Contract.
 
For reference Valuation in Works Contract is as follows:
Broadly, two options are available to service provider –
(a) Calculate value of service as per rule 2A of Service Tax (Determination of Value) Rules, 2006 (in short ‘Valuation Rules) and pay service tax at normal rate  on such ‘value’. In such case, assessee can avail Cenvat credit of input services, inputs and capital goods
(b) Pay service tax under ‘composition scheme’ at 3.43%(1/3rd of current rate 10.3%) of ‘gross amount charged for works contract’ (inclusive of education cess and SAH education cess), under ‘Works Contract (Composition Scheme for Payment of Service tax) Rules, 2007’. As per rule 3(2) of Composition Scheme, the assessee cannot avail Cenvat credit of inputs. Thus, the assessee can avail Cenvat credit of input services and capital goods.
In both the cases, Vat/sales tax will not be included in the ‘value’ for purpose of calculating service tax.

CST IS REVENUE OF CENTRAL GOVERNMENT WHICH IS CHARGES ON SALES AGAINST "C" FORM. JOB WORK IS REVENUE OF CENTRAL GOVERNMENT WHICH IS CHARGED AT THE VALUR OF JOB WORK OF RAW MATERIAL CONVERTED TO FINISHED GOODS. AT THE TIME OF SALES FINISHED GOODS VALUE OF JOB WORK AND SERVICE TAX INCLUDED IN THE COST OF GOODS SOLD.

thank you all for clarification.

if tax not applicable on tax , why we apply vat/cst on excise..?

And I have seen may cases whare basic+service tax + vat/cst appled on sale of software, like microsoft,wonderware,matricon etc.

CST IS ON GOODS TAX & SERVICE TAX ON SERVICES HOW IT COULD BE POSSIBLE TO CHARGE. IT NOT ALLOWED AT ALL


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register