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Payment of service tax c/o u/s 195

Queries 854 views 2 replies

Narendra Kumar

executive

48 Points Joined April 2009

Dear Friends

we ( manufacturing co.) are making a pmt of technical consultancy to a foreign colloborator. as per the service tax we have to pay the service tax on his behalf.

now will you please guide me what will be the mode of pmt. I heard that 5% of the total tax should be deposited in cash with RBI and the rest you can set off with cenvat credit ( if available)

please guide me on the same & if yes then please with circular

regads

narendra

Replies (2)

Rajesh Kumar

Advocate- Tax

7806 Points Joined December 2008

Full amount of service tax is to be paid. The payment of service tax has to be made through cash. However, if it is an input service for you, you can take cenvat credit after payment.

CA. Krishna Sagar. K

Finance Manager

84 Points Joined September 2007

Dear,

Same as said above by Mr. Rajesh Kumar, service tax shall be levied on the total service imported by the company. That should be paid by the following month 5th in which the payment to the party outside India.

it will take as input in that paid month. (As per Import & Export Rules of Service Tax)