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Service tax

Pradeep Kumar (Article, CA Final) (227 Points)

03 January 2012

PLEASE HELP ME

Q: SUPPOSE A PERSON IMPORTED AN ITEM FROM USA RS 100

IT MAKES BILL RS 20 AS PUURCHASE AND PAY CUSTOM DUTY

AND RS 80 SERVICE TAX.

IS HE IS LIABLE TO PAY SERVICE TAX OF RS 80 .

IF YES THEN HOW MUCH ?

IF NO THEN HOW CAN HE AVAIL EXEMPTION?

THANKS TO ALL IN ADVANCE.

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3 Replies

Dipjyoti Majumdar (CA in service & CS. dipmaj@ rediffmail.com ) (3468 Points)
Replied 04 January 2012

Here it seems you have imported an item or 'goods'. Prima facie there is no service tax impact in India. However, if you import any service from abroad, the receiver of service in India has to pay the service tax on reverse charge mechanism.

The payment must be made in cash and not through cenvat credit. After cash outgo, you can avail or utilise the cenvat credit.

Regards,

CA Prabhat Gupta (Manager (Indirect Taxes)) (821 Points)
Replied 04 January 2012

The query is not very clear. Please feed some more facts to get specific replies. It is not possible for an importer to make a bill for himself. Please clarify the query.