Payment certificate and abatement, Service Tax

[Sudhir Kumar]

If a party submit only payment certificate showing VAT/Sale Tax deducted by the Service recipient and he imparted the construction work to them, is a valid ground to assume that he has given work contract service.?

Posts / Replies

[KASTURI SETHI]

    Payment of VAT/Sale Tax is a proof for sale (direct or deemed sale) and not for SERVICE.

   VAT and Service  Tax  are mutually exclusive-------Supreme Court.

[KASTURI SETHI]

Abatement  under Rule 2 A of SERVICE TAX (DETERMINATION OF VALUE) RULES, 2006 as amended read  with  Notification No.26/12-ST dated 20.06.12 can be claimed on the basis of  VAT/Sale Tax returns (Proof of payment of VAT). 

Ratio of the judgment  of Hon'ble in the case of  Commissioner of ST Vs. Quick Heal   is applicable.