Service tax on story writer service ?

Yes Simran...ST is applicable

Originally posted by : Ankit
	Yes Simran...ST is applicable

Thnks Ankit sir,
bt if no service tax deducted , & and annual payment to story writer amounts to Rs. 24000/- only...
thn how would we comment on it in audit ??

Dear Simran,

you are welcome...you dont have to deduct ST...it is not TDS...

if it is charged in the bill, then ok..otherwise, you have to ignore it....ST is the liability of the person raising the invoice and not yours

Originally posted by : Ankit
	Dear Simran, you are welcome...you dont have to deduct ST...it is not TDS... if it is charged in the bill, then ok..otherwise, you have to ignore it....ST is the liability of the person raising the invoice and not yours

okay......thanks again......

one more ques...if tht service provider is foreigner...thn under reverse charge, is company liable to pay ST ??

You are welcome again Simran,

yes  if the service provider is a foreigner then the company is required to pay ST on Reverse Charge Mechanism.

The service of Story writting is not in the negative list of services and hence service tax is payable, Further, if the service provider is a foreigner then also service tax is payable under reverse mechanism.

If story writer is indian and gross amount of all the service provided by him is less than Rs.10 lakh a threshold limit for exemption for SSI in terms of Notification 6/2005-ST as amended, latest Notif. No.33/2012-ST

Dear Simran,

Content writing is in negative list of service tax. Please refer Notification No. 25/2012-Service Tax

It is the negative list of service tax.

It says on Entry No. 15

Temporary transfer or permitting the use or enjoyment of a copyright covered under clauses (a) or (b) of sub-section (1) of section 13 of the Indian Copyright Act, 1957 (14 of 1957), relating to original literary, dramatic, musical, artistic works or cinematograph films;

Story/Songs/News/Article writing etc is a literary work. Please see the copyright act 1957.

And in all later notifications of service tax, they did not delete this entry. 

So you are not taxable in service tax.