Service Tax Applicable or Not

 

 

Dear All,

We are having contracts for providing the heavy Machinery on hire on which we are paying the VAT but as per the new provisions of Servise Tax it is notified that the service tax is also applicable on the "Supply of Tangible Goods ". My problem is that whether VAT and Service tax both applicable on this type of contracts.

 

please suggest

Replies (10)

yes.. it can be bcoz even in advertising contracts, VAT is payable as well as service tax though VAT is payable on a certain portion only.. however your bill or invoice should determine what is service charges and what is Sales to charge VAT

Service Tax under the catagory of "Supply of tangible goods" gets attracted only if VAT is not payable. Since VAT is applicable in your case, service tax is not attracted.

my ( c.a.)receipt in 2007-2008 is 8.26 lakh.hence i am under the service tax. but i presume my receipt will not cover 10.00 lakh in 2008-2009. my i take exemption in service tax 

Is scanning of documents come under the purview of service tax? Please reply

We run a small outfit dealing in mailing of bulk mail for clients.

The postage for franking is purchased from post office and the meters of the franking machines are set for the amount.  As and when franking is done, the meter reading gets reduced.  At the end of the mailing, bill is sent to the client towards the adjustment of amount paid for postage with the "despatch slips" with the seal of the post office as evidence.  Separate bill is sent for "service charges" for stuffing/franking on which service tax is collected.

Now the Service tax authorities demand that ST should be levied on the postage franked and billed to the clients.  Is it correct?  The postage is "goods" and treated as liquid asset in the books of accounts.  Further the Post office is exempted from the Service Tax so far as basic mail is considered.  Only speed post/money orders attract ST.  The post office also franks customers' letters and no Service Tax is charged.  Can anybody guide?

S. Krishnamoorthy

Dear,

We are doing an IT related bussiness,so we have one web development vendor and one Animator .I think in 2008 Budget ,the service tax applicable for these two services.Is it right or notified?

If yes,How can I know the total reciept of that firms,whether it covers 10 lakh or not?

Dear Sir,

i like to know which services are not coming under Service Tax?

Best Regards,

Devendra Khairnar

9922934484

Originally posted by :Shyam Lal Naik
" Service Tax under the catagory of "Supply of tangible goods" gets attracted only if VAT is not payable.

Since VAT is applicable in your case, service tax is not attracted.
"


 

Is service tax is applicable for packing of Milk ?

service tax on training academy of aviation whether liable for service tax  or covered under vocational training institute exemption.

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