Service tax

Share
Share This Thread
  1. Usha Srinivasan

    Usha Srinivasan New Member

    I am entering into a contract with a software services company . The compensation exceeds 10 lacs.

    My query:
    This is the first year.
    Taking a sample amountof compensation as 3000000 that i will be receiving, how should i compute service tax?
    Usha.S
     
  2. ZED

    ZED Well-Known Member

    Service tax would be on gross amount charged by you. You also need to get yourself registered under service Tax and since this is your first year, your aggregate value of clearances of upto 1st 10 lakhs would be exempt from ST provided no CenVat credit is taken and conditions as mentioned under Notification No. 33/2012 are fulfilled.
     
  3. Usha Srinivasan

    Usha Srinivasan New Member

    Canyou explain onCenvat
     
  4. ZED

    ZED Well-Known Member

    In short, its basically that since aggregate value of services till ten lakh has been considered as exempted, the credit for provisioning of such (exempted part of) services should also not be allowed because credit is available only if you pay ST. If you are not paying ST then you should also not be allowed to claim credit of SO MUCH of the TOTAL credit which relates to exempted portion.

    I am citing extracts from the Notification, it will bring you more clarity.
    Since its your first time in ST, I would recommend that you take a proper consultancy from a tax practitioner in your local area.


    (ii) the provider of taxable service shall not avail the CENVAT credit of service tax paid on any input services, under rule 3 or rule 13 of the CENVAT Credit Rules, 2004 (herein after referred to as the said rules), used for providing the said taxable service, for which exemption from payment of service tax under this notification is availed of;

    (iii)the provider of taxable service shall not avail the CENVAT credit under rule 3 of the said rules, on capital goods received, during the period in which the service provider avails exemption from payment of service tax under this notification;

    (iv) the provider of taxable service shall avail the CENVAT credit only on such inputs or input services received, on or after the date on which the service provider starts paying service tax, and used for the provision of taxable services for which service tax is payable;

    (v) the provider of taxable service who starts availing exemption under this notification shall be required to pay an amount equivalent to the CENVAT credit taken by him, if any, in respect of such inputs lying in stock or in process on the date on which the provider of taxable service starts availing exemption under this notification;

    (vi) the balance of CENVAT credit lying unutilised in the account of the taxable service provider after deducting the amount referred to in sub-paragraph (v), if any, shall not be utilised in terms of provision under sub-rule (4) of rule 3 of the said rules and shall lapse on the day such service provider starts availing the exemption under this notification;



    Email: [email protected]
     
  5. MR. AJAY KUMAR

    MR. AJAY KUMAR New Member

    Dear Sir. We run a printing press in delhi. our main job is printing, binding, designing, etc. Sometimes Design is provided by Party which we print on papers supplied by us. ( Paper, Ink, Plates, etc. provided by us) at the time of billing we mention - Printed Material (Item Descripttion only) and charged vat from party on the same?

    Also for job work - paper supplied by sub-agents we print as per there requirement....is service tax or vat applicable above ? Our Turn Over is 14 Lakhs as per last financial year. Is there any exemption on printing industry under service tax? if so under which rule? your proper guidance will be highly appreciated.
     
Draft saved Draft deleted
Loading...
Similar Threads Forum Date
Services provided by SEZ Developer to SEZ Units GST Feb 8, 2018
AVAILABILITY OF INPUT TAX CREDIT TO SERVICE PROVIDER GST Jan 12, 2018
GST for SEO and Digital Marketing services to Foreign Clients GST Dec 27, 2017
What goods and services are exempt? GST Dec 18, 2017
Is GST charged on exported goods and services? GST Dec 18, 2017