FAQs - Companies/Business Entities
SERVICE TAX - REVERSE CHARGE
How many and what services are covered under Reverse Charge. What is the nature of its chargeability?
The following table depicts the services covered and nature of its chargeability - Sr. No. Description of service Service provider ... Read More
Is service tax applicable on services provided by all directors to the company w.e.f. 1-7-2012?
Service tax is payable on services provided by non-executive, nominee and independent directors to the company w.e.f. 1-7-2012. Service tax is not pay... Read More
Can service receiver deduct service tax from payment made to service provider?
Often service receiver (who is usually in a dictating position) deducts service tax from payment made to service provider, in cases where service rece... Read More
How service provider should value a service?
Legally, valuation of a service by service provider and service receiver is done independently. The service recipient would need to discharge liabili... Read More
Can Service Provider claim refund of excess Cenvat credit?
In case of reverse charge, the service provider is either not liable to pay service tax or is liable to pay service tax at reduced rates. In such case... Read More
If entire amount of Service tax liability paid by service provider should it be demanded again from Service Receipient?
Service Tax - Reverse Charge liability paid by Service Provider, should not bedemanded again from Service Recipient We are sharing with you a... Read More
Can a service receiver ask the service provider to pay entire amount of service tax instead of service receiver paying the same?
When a statutory liability is fixed, it cannot be shifted to another person by an agreement. Please do not use such short cuts.... Read More
Can the service provider avail of Cenvat credit when he is liable to pay 25% or 50% service tax?
Even if service provider is liable to pay service tax on 25% or 50% amount, he is entitled to entire 100% Cenvat credit available to him. (This was in... Read More
Can the service receiver avail of Cenvat credit of tax paid by him under reverse charge?
The assessee paying service tax under reverse charge method will be eligible to avail of Cenvat credit of the service tax paid on the basis of GAR-7 C... Read More
How service provider should issue Invoice when part of service tax is payable by service provider?
Where the service provider is liable to pay part of service tax (25% in case of manpower supply and 50% in case of works contract), he should charge o... Read More
Whether service tax is payable on gross amount paid to service provider or whether the amount paid can be taken as inclusive of service tax and then back calculations can be made?
One issue is whether service tax is payable by calculating 12.36% of the amount paid to service provider or the amount paid to service provider should... Read More
Though we are liable under reverse charge, the value of service received by us is less than Rs. 10 lakhs per annum. Can we claim exemption from payment of service tax?
The service receiver is liable to pay service tax even if value of service of service provider is less than Rs. ten lakhs - Para 10.1.3 of CBE&C's... Read More
Whether service tax can be paid through Cenvat credit balance available with us?
Cenvat credit cannot be utilised for payment of service tax when tax is payable under reverse charge method. The reason is that Cenvat credit can be ... Read More
What is due date for payment of service tax when service tax is payable under reverse charge?
W.e.f. 1-4-2011, service tax is payable on accrual basis and not on receipt basis. However, where service tax is payable under reverse charge, tax wil... Read More
What is meaning of 'Body Corporate'?
As per rule 2(bc) of the Service Tax Rules, 'body corporate' has meaning assigned to it in section 2(7) of the Companies Act, 1994. As per section 2(... Read More
What is meaning of a 'business entity'?
"Business entity" means any person ordinarily carrying out any activity relating to industry, commerce or any other business or profession - section 6... Read More
Who is liable to pay service tax? Meaning of Business Entity and Body Corporate.
In some cases (like manpower supply, security service, renting of motor vehicle to carry passengers, works contract), service tax is payable under rev... Read More