DEPOSIT OF SERVICE TAX, Service Tax

[S.C. WADHWA]

ABC Pvt. Ltd. a company registered in India want to pay ₹ 600000/- to a company in Mauritus for professional services rendered by it towards formation of a new company, appointment of directors, company secretary.

Query is:

Whether ABC is required to deposit service tax on recipient basis. If yes, at what rate.

Posts / Replies

[kulwant singh khalsa]

you need to pay @12.36%

further there are no abatement or exemption

[Pradeep Khatri]

Dear S.C.Wadhwa,

Under Rule 3 of the POPS read with Notification No. 30/2012-ST/20-06-2012 w.e.f. 01-07-2012 as amended from time to time, you are under obligation to pay service tax @ 12.36% on the gross value of the amount which is required to be paid to your counter part. Further, there is no abatement or exemption is associated with this notification. This service tax amount is required to be paid through e-payment in cash(GAR-7 challan).

Further, you may also avail the CENVAT credit after following the prescribed provisions of the CENVAT credit Rules, 2004.

Regards,

YAGAY and SUN

(Management and Indirect Tax Consultants)

[Naveed S]

Yes, deposit the service tax at 12.36% and thereafter avail cenvat credit for the tax paid.