Service Tax Applicability

Queries 1490 views 9 replies

 A CA Firm which is located in delhi got audit of banks all over india, it decided to share the works of southern india with a firm in chennai. Both the firms are not related. Whether Chennai CA Firm need to pay service tax on the bill which it raises on Delhi Firm for the services rendered??

Replies (9)

Chennai audit firm is a sub-contractor for the Delhi audit firm. Now, even sub-contractor are required to pay service tax, therefore Chennai audit firm is duty bound to charge and pay service tax on audit fee received from Delhi audit firm. Delhi firm may take cenvat credit of the service tax charged by Chennai firm

Originally posted by :Dinesh Kumar Agrawal
" WAT ARE THE RATE APPLICABLE FOR RENT AND TRANSPORTATION UNDER SERVICE TAX "


 

There is only one rate of service tax- 12% plus 2% education cess plus 1% HS education cess.

Off course certain exemption notifications are there. The effective rate for rent is 12.36% and for GTA 3.09%.

Is there any slab for charging service tax,because my client has very few of such transactions. Can i not charge servive tax to my customer since it may fall under least slab,if any.

Small service providers, having gross turnover upto 10 lakhs are exempted from payment of service tax.

Will A DISTRIBUTORSHIP OF A TELECOMMUNICATION CO., (eg. reliance, TATA, Airtel etc), for sale and distribute their handset, SIM and talk up value cover under service tax ambit?

i.e. a dealer purchase all these item from co. and sale it to retailer then he cover under service tax and if cover then wht will be the taxable value???????????

Small service providers, having gross turnover upto 10 lakhs are exempted from payment of service tax.

The distributor makes sales more than 5 cr. in a year

so not cover small service provider exemption

will the distributor cover under service tax and wht wil be the taxable value for  tax calculation

 

PLS HELP ME FOR THIS PROBLEM

A DISTRIBUTOR OF A TELECOMMUNICATION CO., (eg. reliance, TATA, Airtel etc), made purchases from that co. for sale and distribute their handset, SIM and talk up.

will this activily be cover under service tax act???????

 

if cover then wht would be the taxable value of tax purpose?

this dealer not a small service providers, hence no exemption under SSI exemption.

pls solve this problem.

thanx

 


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