Liability of service provider and service recipient is independent of each other : service tax liability of service provider and service recipient is for respective specified amounts, totally independent and different from each other. Since provisions under Section 129A 6 of Customs Act and 35B 6 of Central Excise Act, are identical, no fees is payable in respect of appeals pertaining to refund of excise duty or Customs duty too. Yes, because he is neither liable to pay tax, nor his aggregate value of taxable services exceed Rs. In respect of sub-agents of lottery, Service Tax shall be paid by the distributoror selling agent of lottery. Yes, penalty will imposed on you, if your fail to pay tax on time.
In the budget of 2016-17, the government announced that Sebi will be exempted from service tax effective from April 1, 2016. Service Tax Rules: As per the Finance Act, 1994, the government of India creates a set of rules in order to assess and collect service tax in India. The invoice also indicates that for claiming reimbursement, expenses should be incurred as an agent and a claim should be raised for reimbursement and not as a charge for the service. Construction contract is for residential complexes, including value of land need not be works contract 30% of total amount 2. So how to calculate the Service Portion which is taxable under service portion???.
Do I need to register with the department? We are paying amount to security firm and it is a society. On account of the dual nature of the work, a works contract has its own definition under section 65 105 of the Finance Act, 1994. Later on the error came to notice that partnership firm was not liable to pay service tax under reverse charge. We should take 40% or 30%. Therefore two situations may arise if our concern is on the invoice issued to the recipient of the service: If in case, professional service is provided by A to B, say A contracts with B for building a house. The builder admittedly paid Service Tax on the gross taxable value including the cost of such materials. In other words, in case of reverse charge, the service recipient can avail abatement and pay tax 3.
Dated: 14-6-2015 By:- Dear Sir this is a case where the tax has been paid where the liability to pay does not casted. Limited Company in the field of Pathology, hiring a Van from vendor status proprietor to collect blood samples from our various collection centers to our Laboratory to perform the tests. It no payment is received, there is no liability to pay service tax. My question is whether I will get the basic exemption limit of Rs. In case the service provider is availing the input credit, service tax liability shall be distributed between service provider and service recipient in the ratio 60:40.
Counsel for the respondent fairly agree that they do not have a written agreement. Recommended Read: Service Tax on Cash Basis Earlier Service Tax was charged on cash basis for every service provider. This sponsorship liability rest on receipant of service, which is also available as credit, then the obvious reason for compliance is not known. We are in contract with a manpower supply agency, who is registered under companies act, 1956. Therefore, as per the judgment of Bombay High Court service tax cannot be levied prior to 17-4-2006 and the charge was created only after the introduction to Section 66A of the Finance Act. Cross-objection is also disposed off.
Also advice me that in future what amount of service tax should I inclued in my hiring bill. Does liability of those people shift to him and he should deposit that service tax. Carpet area of residential unit is more than 2000 square feet or 3. C Construction contract is for industrial or commercial construction, including value of land need not be a works contract 30% of total amount Service Tax Works Contract Exemptions The list of various work contract services that are exempted from service tax are as follows: a. To anybody corporate or partnership firm located in the taxable territory. However Individual Service Providers have to deposit this Tax with the Govt only when the Invoice Amount has been collected.
Regards Raman K Agarwal Sir, We are an Insurance Broking Company and receive commission from the Insurance Companies. The company pays freight of Rs. Moreover, if service receiver pays expenditure then whole of costs gets included in the invoice and cannot be ignored. Reimbursement is a process via which one person is compensated by another for expenses, damages, losses for such other instances. First check the status of the contractor service provider ,if service provider is company then reverse charge is not applicable. Service tax refers to tax collected by the government of India from certain service providers for providing certain services.
The service tax liability on the recipient of the services would come into effect only from 18. Yes , reverse charge is applicable. However, from 1 July 2012 the concept of taxation on services was changed from a 'Selected service approach' to a 'Negative List regime'. Under declared services, various services are listed and explanations to separate the service portion from the total service is provided in Service Tax Determination of Value Rules, 2006. It is seen that no verification has been done by the Revenue at the service providers end so as to factually verify whether the services actually stand rendered by them or not. Basic Features of Service Tax There is no separate act governing the imposition and collection of service tax. Two-floor Houses: Service tax on construction of two-floor houses, in case both are capable of being transferred separately, must be paid separately.