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Plz answer very practical problem .....

Queries 1475 views 9 replies

one of my client uses the services of storage tank charges for storing oil & paying service tax on such charges........such storages tank charges are fixed cost for my client.....however my client uses this  storage tank for storing the oil of other party and charges storage tank charges from party with some profit ....my question is WHETHER THEY ARE LIABLE TO REGISTER THEMSELVES UNDER SERVICE TAX FOR THIS ACTIVITY.....

IF YES UNDER WHICH SERVICE......

PLZ PARTICIPATE...

Replies (9)

Yes they should register under Storage & warehousing services accounting code for this service is 00440193

Originally posted by : shushantsinghal

one of my client uses the services of storage tank charges for storing oil & paying service tax on such charges........such storages tank charges are fixed cost for my client.....however my client uses this  storage tank for storing the oil of other party and charges storage tank charges from party with some profit ....my question is WHETHER THEY ARE LIABLE TO REGISTER THEMSELVES UNDER SERVICE TAX FOR THIS ACTIVITY.....

IF YES UNDER WHICH SERVICE......

PLZ PARTICIPATE...

yes, when they are availing storage tanks on hire, then bills are submitted to them, same pattern of input services  should be applied for the output services,

they have to register themself with department and discharge duty liabity

Yes they should register

If your client has crossed the threshold exepmtion limit which is Rs. 10 lacs as per the Notification 8/2008 dated 1.03.2008.

After the registration, your client should charge the Service Tax on the Total Bill amount (i.e. the actual expenses + his profit) to the clients. and they can take the credit of the Service Tax paid on their Expenses and the difference has tobe paid by them which is collected from the party.

Originally posted by : Sushma Mevacha

If your client has crossed the threshold exepmtion limit which is Rs. 10 lacs as per the Notification 8/2008 dated 1.03.2008.


After the registration, your client should charge the Service Tax on the Total Bill amount (i.e. the actual expenses + his profit) to the clients. and they can take the credit of the Service Tax paid on their Expenses and the difference has tobe paid by them which is collected from the party.
 
Originally posted by : Sushma Mevacha

If your client has crossed the threshold exepmtion limit which is Rs. 10 lacs as per the Notification 8/2008 dated 1.03.2008.


After the registration, your client should charge the Service Tax on the Total Bill amount (i.e. the actual expenses + his profit) to the clients. and they can take the credit of the Service Tax paid on their Expenses and the difference has tobe paid by them which is collected from the party.
 

Consequent upon increase in threshold limit of exemption from Rs.8 lakh to Rs.10
lakh, notification No.26/2005-Service Tax dated 07.06.05 and notification No.27/2005-
Service Tax dated 07.06.05 have been amended to raise the limit for obtaining service tax
registration
from Rs.7 lakh to Rs.9 lakh.

yes need of registration

Yes,there is a requirement for the registration.


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