Taking credit of tax paid

Hi All

A Query....

Whether Query posted above is NOT understandable....OR not commentable...

Tell Me yaar... i will rephrase it

But atleast give your valuable inputs.

Thanks ALL

Dear Sunny,

Unlike Excise where we have concept of First & Second Stage Dealers, there is nothing in Service Tax

Therefore,

1) U cannot show amount of service tax separate in ur invoice...

2) Since u cannot show the amount of service tax separately, the question of credit doesnot arise.

3)While calculating the excise liability, the entire freight(including service tax) will be excluded as per Rule 5 of Valuation Rules, 2000

Thanks Amir...........

This uploaded file is not related to this thread....

Please Excuse me

Thanks

Dear Sunny,

I think u have posted the above message on wrong thread, whether credit is allowed on outward transportation or not is not that we were discussing in the present case..

Our dobut was whether the seller can pass on the amount of service tax paid on freight to the buyer of goods for availment of credit..............

Hope u got it..

plz clarify yaar, i m getting confused now... 

agreed dear,,,

Really very very sorry ,

the topic i posted is not related to this thread...let me change the thread for it...and your confusion is understandable....

Sorry once again and will you please guide me if there is already a thread related to this or do i start a new...

thanks amir

Originally posted by : Amir
	Dear Sunny, Unlike Excise where we have concept of First & Second Stage Dealers, there is nothing in Service Tax Therefore, 1) U cannot show amount of service tax separate in ur invoice... 2) Since u cannot show the amount of service tax separately, the question of credit doesnot arise. 3)While calculating the excise liability, the entire freight(including service tax) will be excluded as per Rule 5 of Valuation Rules, 2000

Hi Amir,

Dear i have seen invoices TODAY again and found the same( which i mentioned above) that companies are charging and showing service tax separately(on freight) on their invoices and taking that in to consideration whats your opinion whether buyer can take credit on that service tax because he is getting invoice on which service tax component is mentioned separately.....

I think he( buyer) can take credit

BUT AS FAR AS LAW is concerned i have the same opinion that WE cant show service tax component in a manufacturers invoice...

BUT client has faced excise audits in past and no objections were raised by officials on that ground.

PURPOSE why i am asking this is that in other threads we admited that credit can be taken on outward freight so even if i am showing it in my invoice can i take the credit....on outward freight...

i think buyer will only get credit IF we assume that i can show ser. tax component in invoice...

NOW THE BIGGER QUESTION IS what can/cannot be shown in invoice

I found the similar discussion at this thread.. please users go through this .

/experts/experts_message_display.asp?group_id=8786

IT Helps to clarify many of doubts.....BUT still practically what  this company is doing is different from what law states.

ENJOY.....

keep sharing