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Service tax query

CA Rajesh Pabari (Chartered Accountant - Advisory & Audit) (247 Points)

23 June 2008

We are a chemical company and paying transport charges to a transporter amounting to rs. 10 lakhs, and he is not charging service tax but mention has been made on its Bill about service tax (3%) and edu cess on the same,

Do we need to pay the mentioned amount after claiming abatement, though they have not mentioned it specifically in the invoice but they gave it just like a post scripttt mentioning.

What steps need to be taken?

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13 Replies

CA. Sunil Sakral (Salaried - CA) (34 Points)
Replied 24 June 2008

We are Chemical manufacturers and providing transportation services ..

My question is what are those services on which we can claim service tax credit..

Pls mention Section no. so that I could also review..presesntly we are taking credit of telephone, professional services

Pls reply soon

regards

(Guest)

You have to pay full amount of invoice to transport service provider. In addition you have to pay service tax on 25 % of total invoice amount @ 12 % + edu cess. So, you have to pay that much service tax amount directly to the department and you can claim input credit on it.

CA. C V SURYAM (Practising Chartered Accountant) (865 Points)
Replied 24 June 2008

You can take abatement and pay the service tax. This service tax is eligible for Cenvat credit in the following circumstances.
1) If the transport is engaged for inward transportation i.e., for bringing the materials etc. into your factory.
2) If the transport is engaged for outward transportation i.e., for clearance of your finished goods from your factory but subject to the following conditions:
   a) If your CE invoice depicts separately the price and ED on price; freight and
       ED on freight separtely and paid ED; and
   b) Even if your CE invoice shows that price is inclusive of all including freight
       and paid ED accordingly

That means, such cenvat credit is not avaialbe for factory gate sales. Delivery shoudl be at customers' place.

CA Chirag (vvvvvvv) (34 Points)
Replied 25 June 2008

How would u treat the following??? Total sales-500 Billing Tax (Service Tax)-60 Collection tax (Service Tax)-45 (inclusive of input credit) Input credit taken is-15 So after taking credit,we remit only the net figure i.e. 30 to the govt. is this 30 be shown as deduction from total sales in p&L Thanks in advance, Chirag

devendra saraf (chartered accountant) (31 Points)
Replied 26 June 2008

Whether VAT or Service Tax is payable on food bill submitted by a caterer providing catering services in a company owned guest house.

CA Rajesh Pabari (Chartered Accountant - Advisory & Audit) (247 Points)
Replied 26 June 2008

Hello sir,

Thank u very much for ur answer.

It helped me a lot in the process of adding to my experience

(Guest)

What is the position of taxability of Service tax in the case of a partnership firm manufacturing Jewellery registers its firm name under trade mark and further markets its jewellery under the registered brand logo/trade name.

S.P.Mahanta (Internal Auditor) (647 Points)
Replied 01 July 2008

Vat & Service tax is payable on the bill raised by the Caterer on food bill. However, Vat shall be payable on the value of food provided & Stax on value of Service . Service shall be entitled to avail abatement benefit.

(Guest)

Hai ,

This is Srinivas from Globarena Technologies pvt ltd Hyaderabad

we are dealing software development and supporting services etc

if want to buy licensed software from Microsoft then they are charging Vat and Service Tax for downloding the licensed software. so that pls clarify above said and central govt as passed the notification no 18/2008 dt 10 th may 2008

is it applicable vat & service tax on software items

regards

Srinivas lv

Hyderabad

(Guest)

Dear Sir,

I have got old service tax registration no. i want to know new pan based service tax no. and premises code how do i know

Suvrat Shah (30 Points)
Replied 04 August 2008

Ours is a company in the business in the field of computer-based technology.

Our different area of operations are as under :

1. Desktop Application

2. Web Application

3. Computer-based design work, such as web page designing, corporate stationery designing like visiting card, letter-heads, logo etc..

4. Server Maintenance and Technical Support

5. Domain Hosting and Space on Server

You are requested to give the head of the service tax, under which, each of the above services is taxable, if any, rate of service tax with abatement available, if any and date from which such service has become taxable.

Thanks,

Suvrat Shah

Shweta Mehta (Articleship) (21 Points)
Replied 12 August 2008

Dear Sir,

My Company is Purchased Software and purchaser Charged Service Tax On Purchase Value and also charged VAT on Purchase value plus Service tax, so pls reply me fast that it is right or wrong and pls provide me related Notification or Circular

With Regards

Shweta Mehta