Query

Queries 729 views 5 replies

Guest

Q.1 Advance received against services (any) to be provided and Service tax has been deposited to Govt A/c. Due to some reason the services not provided to customer and advance returned to customer. Should service tax amount refunded to customer or not??

Q.2. If any one having more then 1 service tax registration (like comm., rent etc) and paying service tax on expenses (courier, bank charges, Telephone) commonly. What should the basis to get Input benefit of Service Tax ??. Please also mention the section of Law also.

Replies (5)

Pavan Jain S

Chartered Accountant

1575 Points Joined December 2008

1. You can refund Service tax amount to the customer. The ST paid by you can be adjusted by you against the liability for the next month provided the amount of ST refund do not exceed Rs. 1,00,000

2.How can there be separate registration for two services unless there are two different premises?

Guest

Thanks for reply but please let me know the respective section of Law in both question also

Mohinder Kumar Sharma

Chartered Accountants

45 Points Joined May 2008

Facts of the caes

One of our client is engaged in providing services such as ;

1). Renovation / Alteration / Installation of furniture and fixtures mostly in banks.

2). Some Contracts are inclusive of material and labour.

3). Some contracts are for supply of labour only.

Query

1). Whether assessee should opt for composit scheme or not?

2). If, so what will be the rate of tax?

3). Which scheme will be benefitial to the assessee out of normal tax scheme or Composit Scheme?

Please clarify the matter.

Guest

Service tax authorities are of the opinion that an assessee has to opt for composite scheme for all contract and not for a single contract. However this is a disputed matter.

Assesse may opt for composite scheme or general scheme depending upon the VAT liability and ST liability. Even it is possible to opt for composite scheme for ST and general scheme for VAT.