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Service Tax - STPI unit

SSNarayana (Partner) (46 Points)

16 October 2008

Ours is an STPI regd ITES company which has export turn over and domestic turnover also.

1. I would like to know whether service tax applicable to us or not.

2. Our landlord charges service tax in rental invoices, is that right?

3. Do we have to charge service tax for any domestic service we render.

Kindly clarify the above points keeping in mind the fact that our unit is an STPI unit.

Regards

kvs

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7 Replies

K N Mohapatra (CA Practice ) (58 Points)
Replied 16 October 2008

Hi,

You are liable to pay service tax on input services like rent and also charge service tax on output services in DTA. You can avail CENVAT credit also.

For any clarification/consultancy, pls mail me to ksnm72 @ gmail.com

shatrughan sinha (professional) (36 Points)
Replied 16 October 2008

Originally posted by :K.V.Sai S.Narayana

Dear Mr K.V. Sai S. Narayana

The first thing is that You should have the STPI Registration.

As for the STPI unit the Service tax on export of Services is exempt.

Regarding domestic Services, you should bill the client with Service Tax (Whether you are billing to STPI unit or Non STPI unit). For this you should have registered with Service tax Department.

Before this Financial year One STPI unit was not charging Service Tax on the services rendered to other STPI unit).

But from this year, this is applicable to charge the Same and the receipent of Service can claim the refund of Service Tax from Service tax department.

Regarding the 2nd Query, If the Landlord is charging service tax on the Room Rent. If the Landlord is registered with the Service Tax Department for the Hiring of Room, then this is mandatory for them to charge the Service tax.

Shatrughan

shatrughan sinha (professional) (36 Points)
Replied 16 October 2008

Originally posted by :K.V.Sai S.Narayana
"	Ours is an STPI regd ITES company which has export turn over and domestic turnover also. 1. I would like to know whether service tax applicable to us or not. 2. Our landlord charges service tax in rental invoices, is that right? 3. Do we have to charge service tax for any domestic service we render. Kindly clarify the above points keeping in mind the fact that our unit is an STPI unit. Regards kvs	"

Madhukar N Hiregange (Chartered Accountant) (38934 Points)
Replied 16 October 2008

The EOU / STPI wouldbe liable to pay the servic etax charged by registered servic provdiers. Tehre is no exemption for them. However the matter of ST on rental is before the supreme court and several high courts have stayed the RECOVERY not the LEVY OF THE SAME. You may advise the landlord to pay under protest due to this reason and the reason that renting is not a servic eand that the same is a state subject.

You can avail the credits of all input services used for provding the ITES services which probabaly fall under Business Auxiliary services or Business Support services or ITSS services or management consultancy. For the domestic services you can utilse the credit and charge the local cusotmer/ client 12.36%. Further if the credit left over is substantial then the same can be refunded or rebate claimed under Rule 5 or Not.11/2005 or Not.12/2005 for all of which application would have to be filed along with the proof for rendering the export service , the receipt of the monies in covertible foreign exchange. Presently these claims are being delayed but if amount big better to lodeg the same.

(Guest)

We are STPI Unit & we have maintained two seperate Books of account one for Non STPI Unit & Other for STPI Unit.

Can we avail the Serviec tax input Cr against the payment made towards Rent , Consultancy & other professional services which are booked & paid throught STPI unit.

Thanks & regards,

Satish Kumar

(Guest)

Dear Members,

Good day. I guess this is not the right forum to ask my STPI question. Please excuse me for doing so as I couldn't find any relevant forum.

We would like to get STPI registration for our company but I am hearing different durations for obtaining such registration. Some people say it can take upto 3-4 months but other people have told me it can be done in 15-20 days. I will appreciate if someone can give me an accurate time duration for this and also what are the documents required for such a purpose.

Thanks in advance,

Regards,

Nishi

(Guest)

Hi Nishi,

STPI registration process is very smooth. If you are ready with set of document required as and when... then you can get the registration in a month. If you need to registerd at Bangalore then I can introduce you to some of my friends in STPI.

Regards

Sanjay (sanjaydave1 @ gmail.com)

Originally posted by :Guest

Dear Members,
Good day. I guess this is not the right forum to ask my STPI question. Please excuse me for doing so as I couldn't find any relevant forum.
We would like to get STPI registration for our company but I am hearing different durations for obtaining such registration. Some people say it can take upto 3-4 months but other people have told me it can be done in 15-20 days. I will appreciate if someone can give me an accurate time duration for this and also what are the documents required for such a purpose.
Thanks in advance,
Regards,
Nishi