Query regarding service tax

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Pankaj Gupta.

CA & CS Final Student

56 Points Joined June 2009

Query regarding service tax input credit.

FACTS

There is a concern which manufactures artificial jewellery set, Furniture and garments. All products are exported by that concern. This concern also provides taxable output services in India like commission Services etc. Due to export we are not registered in excise but registered in service Tax only.

Query

Since Garments, Furniture and jewellery are exempted due to export now our query is that can we take cenvat credit on input service in manufacturing of artificial jewellery set, Furniture and garments and same is adjusted with our output Service Tax liability.

The fabric purchased for manufacturing of final goods is exempted whether it will have any impact on our input of service tax.

Further our CA has advised us that show the input of service tax in excise return then claim in service tax return but as per our opinion there is no need for excise return due to export of goods. Whether it is mandatory or not???

Our Input Services are:

Reverse charged under GTA
Reverse charge under work contract
Reverse Charge under Security Guard
Input on Administrative Service like Rent, Constancy, insurance

Kindly help on above matter.

Thanks in advance..

Replies (9)

CA Ashish K Bansal

partner

175 Points Joined July 2011

U can take credit of input services utilised to provide out put service for the input services utilised in manufscturing of exported goods you would have to file refund claim with service tax department

NIMISH GUPTA

ACCOUNTANT

23 Points Joined January 2012

Whether Service tax is applicable or not on the services provided by him ?

One of my friend is working from his office cum residence and posting online ads on the web sites for games. First he get the ads approved and then upload on the websites. Against that he receives amounts thru Pay pal from different parties/persons directly in his bank account. He is residing in India.

My querry that whether these receipt are subject to service tax or not. Please advice

NIMISH GUPTA

ACCOUNTANT

23 Points Joined January 2012

Please advice/guide whether service tax is applicable or not ?

A client of ours has started a company and is booking orders in India for supply of parts from USA. Those parts are delivered directly to the party and all customs proceedings are handled by the party only. When the Sale is complete and the payment is receied to the USA company. Our Clients receive commission for booking of order from abroad.

Please advice whether the commission receipt so received from abroad is subject to service tax or not. Please advice

Vikas

1135 Points Joined January 2010

Originally posted by : NIMISH GUPTA
	Whether Service tax is applicable or not on the services provided by him ? One of my friend is working from his office cum residence and posting online ads on the web sites for games. First he get the ads approved and then upload on the websites. Against that he receives amounts thru Pay pal from different parties/persons directly in his bank account. He is residing in India. My querry that whether these receipt are subject to service tax or not. Please advice

The location of service recipient has not been provided. If the same is outside India, then the same would not be liable to tax, else, taxable.

Vikas

1135 Points Joined January 2010

Originally posted by : NIMISH GUPTA
	Please advice/guide whether service tax is applicable or not ? A client of ours has started a company and is booking orders in India for supply of parts from USA. Those parts are delivered directly to the party and all customs proceedings are handled by the party only. When the Sale is complete and the payment is receied to the USA company. Our Clients receive commission for booking of order from abroad. Please advice whether the commission receipt so received from abroad is subject to service tax or not. Please advice

I assume that the invoices of the USA company is not in your Company’s name and is in the name of your client.

If yes, your services would be covered under the definition of ‘intermediary’ under Rule 9 of the Place of Provision of Services Rules, 2012, wherein the place of provision of services would be the location of service provider. Thus, your services would be deemed to have been provided in India and thereby, taxable.

chandra sekar

Manager-Accounts

390 Points Joined December 2011

some one has to clarify, whether the fabric manufacturers, are exempted from Service tax on any service received under transportation, Security Charges, Legal Charges, under RCM

Vikas

1135 Points Joined January 2010

Originally posted by : chandra sekar
	some one has to clarify, whether the fabric manufacturers, are exempted from Service tax on any service received under transportation, Security Charges, Legal Charges, under RCM

No Chandra sekar. There is no specific exemption provided for the transportation / security / legal services provided to a fabric manufacturer under Service Tax Law.