Service tax query

Queries 742 views 3 replies

Dear Sir / Madam,

We had started a factory in Howrah for manufacturing of Plastic
containers of different sizes. We take carriage outward charges from
the party for delivering the goods. We also paid amount towards
transport services to agent towards supply of goods. Suppose we charge
Rs. 1000 from the party and we arer paying Rs. 850 to the transport
agent and the remaining Rs. 150 was shown as indirect income. We also
received printing charges bills from the party for printing logos and
other items on plastic containers. We also recieved labour charges
bill for other works. So what type of services are chargeable to us.
Shoild we available cenvat credit on that services. Also what will be
consequences for the period 01.04.2012 to 30.06.2012 and thereafter?

Kindly provide the details regading service tax applicability and what
type of serivces are chargeable to tax on the basis of reverse
mechanism?

Waiting for your reply?

Replies (3)

1. You are liable to pay tax on 25% of Rs. 850 @ 12.36% under reverse charge

2. No other service provided by you is subject to service Tax.

3. You are eligibble for Cenvat of Tax paid on labour & other charges

Thanks for your reply.

But still some doubt regarding service tax on GTA service. If we paid 100% service tax should I get cenvat credit or not?

Again if we paid 25% service tax as abatement then cenvat crewdit will be available?

Regarding printing chagres party is not paying any service tax and raising a bill at a range of Rs. 3 lakhs to 4 lakhs per month So there is any service tax laibility?

Again labour are supplied by the contractor and they are raising a plain bill without any tax whether any service tax eligible on that?

Please clarify the above if possible with some circulars or judgement if any

Whether you pay service tax on 100% amount or 25% amount, no matter. You are eligible for CenVAT credit, since you are service receiver.

If service tax is not charged by service providers in their bill, then you need not worry. There will be no implication on you. It's their liability and not yours.


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