RADHAKRISHNAN J (Asst Manager-ACCOUNTS) (25 Points)
02 November 2012Dear All,
Can anyone guide, Who is liable to pay Servcie Tax(60% Abatement) on CAB services, whether service provider or service receipient?
One of the Vendor for CAB service raised Invioce and mentioned S.tax to be paid by Service Receipient. Hence clarity is required.
Whether S.tax for CAB service is eligible for cenvat credit?
Regards,
RK
CA Sahil Singla..
(Service Tax )
(3746 Points)
Replied 02 November 2012
Both Service Provider & Service Receiver Liable to Pay Service Tax. Ratio is 50:50. So, you are liable to the extent of 50% only in case you are a Company under Co. Act, 1956
Credit of Cenvat depends upon whether it is covered under Input service as per rule 2(l) of CCR, 2004 rules
Pradeep Nainawati
(ACA)
(496 Points)
Replied 03 November 2012
Whether abatement is claimed or no you are required to pay ST @ 4.94% only on RCM.
If abatement is claimed by Service provider 100% ST is required to be paid by you on RCM.
If abatement is not claimed by Service provider you are required to pay 40% of total ST on RCM and 60%.
Kindly refer Notification No. 30/2012-ST for further reference.
GST Live Certification Course (39th Batch) - April 2024 (Weekend Batch) (With Certificate)
"Live class on Python for Financial Analysis: Unlocking Efficiency in Accounting and Finance"
CAclubindia
