Hello All,
I have a question that if X company raise INV to Y Company and X company paid Service Tax (Rs-10.00)on time,But Y company Raise INV to another company (Service tax Rs.9.00) and says that X company Paid Service tax Rs.10.00 behalf of me. here i think its a wrong concept ,Y Company should Pay Service Tax Rs.9.00 behalf of himself, if not please tel me what to do?
From what i could understand from you query, you may be right. You may mail me the details for further clarifications.
Dear Bikash,
As concept of CENVAT Credit is applicable, Company Y must have taken CCr of Rs. 10. Hence, it shouls charge Service Tax of Rs. 9 and claim CCr of Rs. 10.
Company X shall pay Rs. 10 as service tax on output services provided.
Rahul Dang & Associates-Chartered Accountants
Pune
CA Inter
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