Service Tax on reverse charge method - reg.

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..... Service Tax on reverse charge method - reg.
Query (Issue) Started By: - vinay wakde Dated:- 3-8-2012 Last Reply Date:- 5-8-2012 Service Tax
Got 6 Replies
Service Tax
We are hiring Cars/Sumos for verious company`s work. All the service providers were not crossed the limit of 10 lacs in previous financial year therefore they are not registered under Service Tax. From 01.07.2012 onwords, .....

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..... if the service receipient is company /business entity then they have to pay Service Tax to the extent of 4.95% ( 40% 0f total Hire charges paid) under reverse charge method. Kindly clarify whether we shall take input service credit on the strength of Bank challan? Regards, VINAY Reply By Pradeep Khatri: The Reply: Yes, you may. As Bank Challan is now authentic document to avail the CENVAT cre .....

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..... dit on input service. Further, you would have to prove the nexus between input services with manufacturing activities or output services. Reply By JAMES PG: The Reply: As per Rule 2 (l) ii B of Cenvat Credit Rule, services provided by way of renting of motor vehicles is excluded from the definition of input service. Hence taking Cenvat credit of ST paid under reverse charge for taxi hire charges .....

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..... appears to be inadmissible Reply By Gajanand Verma: The Reply: Yes, Company can take the benefit of CENVAT of the Service tax paid to the extent of 4.95% Reply By Gajanand Verma: The Reply: Yes, Company can take the benefit of CENVAT of the Service tax paid to the extent of 4.95% Reply By JAMES PG: The Reply: Where is the relevant provision in Cenvat Credit Rules which states that hiring of .....

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..... motor vehicles is eligible input service ? Reply By CA Sumit Aggarwal: The Reply: No , Credit of Cab hiring is not avilable. As per Defintion of Input service , credit of cab hiring is excluded.
Discussion Forum - Knowledge Sharing .....

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