Service tax - rule 9 document

Others 887 views 4 replies

Sumant T Hegde

CA Final Student

85 Points Joined May 2010

Hello,

we have a client who is into logistics business. They are paying land rent(license fee) to port autority for the goods stored in port land for import and export. Port authority is charging service tax for the rent amount. But the problem is they are not issuing the invoice, instead they are giving receipt for payment of money where in there will be no separate details for service tax payment. (on specific request they tell the amount the service tax included in the total amount (orally)).

Many times they will recover the amount from customers who demand debit note/invoice mentioning the service tax amount separately.

now my qstion is

1.Can they claim cenvat on amounts which the company bears?

2. Can the company issue debit note mentioning service tax separately along with the reciept for payment to Port authority to pass on the duty to ist clients?

thanks in advance.

Replies (4)

Saurabh Maheshwari

B.com ACA

5923 Points Joined December 2011

As per Rule 4A of ST Rules,1994 , the service provider is under obligation to issue an invoice showing separtely service tax charged.....so you kindly inforrm the s.provider of the statutory requirement and request to atlaeast show the ST charged separately in receipt so that credit may be taken .....

Sumant T Hegde

CA Final Student

85 Points Joined May 2010

Port authority being govt wing will not hear what we tell... what to do?

Saurabh Maheshwari

B.com ACA

5923 Points Joined December 2011

So this is a situation not unde your control...so keep on taking credit of ST charged...and work out the credit by Back calcualtions(Invoice Amt/112.36*12.36)....the back calculation method is used when the tax charged is not shown separately(same as provided in ST Valuation Rules,2006)

During the ST Audit put forth the practical difficulties before you created by s.provider...Deptt will catch hold of that govt. wing .......:-)