Non lifting of agreed material

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..... Non lifting of agreed material
Query (Issue) Started By: - S.C. WADHWA Dated:- 10-5-2015 Last Reply Date:- 21-8-2015 Service Tax
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Service Tax
Dear Expert, 1. A Company entered into a contract for manufacturing of 1000 kgs of a particular product with another company. 2. It manufactured 1000kgs but the buyer could not purchase the entire quantity. 3. The .....

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..... company raised debit note for compensation excluding taxes for material not purchased by it. 4. The product is excisable. Amount of debit note is ₹ 20 lacs. Query is: 1 Whether it is covered under declared service. 2 If yes, whether service tax would be levied or not. 3 The company is not registered as service provider Whether it has to get registration under service tax .....

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..... as service provider. Please give your expert opinion. Regards, WADHWA Reply By bhart b sharma: The Reply: there is manufacturing but no clearance of final product so no excise duty is applicable in this case. secondly, service tax is imposed on value realised by the service provider in lieu of services that are rendered to the service recipient. in this case, it is disputed amount which is ra .....

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..... ised by way of debit notes - a sort of civil penalty and recourse would be to settle in a civil suit. regarding procurement of service tax registration on account of having raised a debit note, there appears to be no requirement of service tax registration as no service appears to have been provided
Discussion Forum - Knowledge Sharing .....

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