Sir,
We are a factory registered under Indian Companies Act, 1956 and governed by Indian Factories Act also. We are now paying transportation charges. 1) Are we liable to pay Service Tax? 2) If yes, Can we avail Service Tax credit on Excise?
Sathish (Manager) (24 Points)
23 July 2012Sir,
We are a factory registered under Indian Companies Act, 1956 and governed by Indian Factories Act also. We are now paying transportation charges. 1) Are we liable to pay Service Tax? 2) If yes, Can we avail Service Tax credit on Excise?
CA Mayank Tulsyan
(B.Com(H), ACA)
(274 Points)
Replied 23 July 2012
https://www.cbec.gov.in/ub1213/st13-2012.htm
CA Mayank Tulsyan
(B.Com(H), ACA)
(274 Points)
Replied 23 July 2012
Ajit kumar Dubey
(Taxation Manager)
(637 Points)
Replied 23 July 2012
Rohan
(Consultant)
(91 Points)
Replied 23 July 2012
Yes you are liable to pay service tax on 25% of the Total Transportation cost. ie Transport Charges x 25% x 12.36%.
Well technically yes, you can take the cenvat credit of such Service tax paid, provided its forming a part of your input services & you're not availing any exemption or abatement while discharging duty.
CAclubindia
