Cenvat Credit Cenvat credit on input services and goods; Cenvat Credit on capital goods; , ¨ If sub-contractor himself is undertaking work which is exempt from service tax (eg sub-contractor undertaking work of construction of public road itself) , In case of service tax on works contract, service tax can be paid either on basis of .
Composition Scheme and Abatement in Service Tax Introduction , Generally it is assumed that if abatement is availed then the service provider cannot claim Cenvat credit, but this is not always correct , It is not cancellable contract the lease becomes the owner practically but not legally
Works Contract Composition Scheme under Service Tax Before introducing the new Service Tax Law wef 01-07-2012 the works contract composition scheme was governed by the Works Contract (Composition Scheme for Payment of Service Tax) Rules, 2007 [View/Download]After 01-07-2012 the composition Scheme for works contract has been incorporated under Rule 2A of the Service Tax ,
Mar 03, 2015· In case the work is executed by service provider at the site of service recipient, the service provider would indemnify the service receiver of any loss to inputs and infrastructure The employee deployed for the assigned job would be under the control/supervision of the service provider
his clients Mr Harish Palve availed and utilised the CENVAT credit of service tax paid to Advocate , Issues on Cenvat Credit Service Providers , repair & maintenance etc of motor vehicles, construction services, work contract service in respect of buildings etc Whether credit is allowed in respect of such services if the said
Sep 12, 2012· GST work contract | Work Contract in , Service Tax 3 : Cenvat Credit rules in Service Tax - Duration: 11:32 City Commerce Academy 11:32 Accounting - AS 7 - Construction Contract - Duration: 1 .
Cenvat Credit of service tax paid on services of Works Contract, Construction of Complex Service, maintenance or repair service cannot be taken and used in paying service tax on ‘renting of immovable property service’ because these services are actually used in construction of immovable property and not directly used in provision of such .
¨ Cleaning service, piece basis or job basis contract ca n be ‘manpower supply service’ only if the labour work under superintendence or control of Principal Employer ¨ Service tax payable on salary plus PF, ESI plus commission of labour contractor
Service provider is under obligation to discharge the Service tax liability on service portion in execution of a work contract However, in few case this obligation is partially shifted to service recipient
433 As per Cenvat Credit Rules, 2004, a service provider is allowed to take , execution of works contract of a building or a civil structure or a part thereof or (b) laying of foundation or making of structure for support of capital goods
CENVAT CREDIT ELIGIBILITY OF VARIOUS SERVICES AS INPUT SERVICES , Job work Eligible if in relation to manufacture or provision of taxable goods/services, modernization or repairs of factory or office, storage, quality control, computer networking , Works Contract Service Specifically excluded – Hence not eligible .
Service Tax on job work where the process does not amounts to manufacture was levied under , raw material / semi-finished goods for job work The provisions of cenvat credit with regard to availment of credit is provided in Rule 4(5)(a) of the Cenvat Credit Rules, 2004 The principal
ABATEMENT RATE CHART UNDER SERVICE TAX SN Service Taxable Condition 1 , liable to pay service tax 30% No cenvat credit availed 2 Transport of goods by rail 30% Nil , For other works contracts, not covered under sr no 16 and 17 , including maintenance, repair, completion .
CONSTRUCTION CONTRACTS (WORKS CONTRACT) – FROM THE POINT OF VIEW OF VALUE ADDED TAX & SERVICE TAX CA P Paul Thangam –[email protected] INTRODUCTION: There general accepted principle is that when a transaction is liable for value added tax(VAT), then the
Dear sir/ maa'm i m a builder registerd as works contract service under service tax department After completing the construction of a building, i will hire a Agent/ Broker to sale that building and that broker charge me brokrage + service tax and i will pay the same can i take credit of that service tax paid to the broker for the sale of building under works contract service???
Work contract is also part of these declared services and service tax on work contract is determined accordingly As per section 66E(h) of the Finance Act, 1994 service portion in execution of works contract is a declared service
However such deposited amount is available for Cenvat credit to service receiver on the basis of challan , Read More about reverse charge on works contract SERVICE TAX CHANGES FROM 01072012 service tax on work contract tax valuation of works contract 01072012 work contract service tax SHARE: COMMENTS BLOGGER: 203
Sep 04, 2016· In the present case, the question was whether the appellant is entitled for the cenvat credit in respect of various services of repairs, renovation and modernization of the premises, on which the service provider has categorized the services under work contract services and discharged the service tax liability
CA Amish Khandhar CA Rashmin Vaja KHANDHAR MEHTA & SHAH Useful Charts for SERVICE TAX June, 2016 21 11th Edition
The service provider is a individual and has provided works contract service on which his liability was 50% However he has paid the services tax and by mistake the receiving company (Ltd company) has paid him the entire service tax charg
An Overview of Service Tax on Works Contract Service under Reverse Charge Mechanism 1 Reverse Charge? As per Section 68(1) of the Finance Act, liability to pay service tax is of the service provider
Explanation 2--For the removal of doubts, it is clarified that the provider of taxable service shall not take CENVAT credit of duties or cess paid on any inputs, used in or in relation to the said works contract, under the provisions of CENVAT Credit Rules, 2004”
Examples of Works Contracts: 1 Renovation of Building: In case of renovation of a building, there are various jobs involved, including painting, demolishing, tiling, scraping, etc All charges for labour in this case will attract service tax However, any work outsourced to a sub-contractor by the contractor will not attract any service tax
• CENVAT credit of service tax paid on services such as construction, works contract etc used for construction of building or civil structure or laying of foundation or making structures for support of capital goods not available to manufacturer
Service portion in the execution of a work contract is subjected to provisions of partial Reverse Charge Mechanism in case such service has been provided by any individual, HUF or partnership firm, whether registered or not, including association of persons, located in the taxable territory to a business entity registered as body corporate located in taxable territory
Issues in Work Contract Service
You have private limited companyIf you avail service from Individual, reverse charge mechanism will be applicable for work contract SO under reverse charge mechanism, 50% of service tax amount is required to pay by you under reverse charge and 50% amount of service tax will be charged by individual under the bill
Jun 16, 2017· Service providers of taxable services and manufactures of final products can avail CENVAT credit on input services and adjust the same against service tax payable on output servic
The Cenvat Credit Rules (CCR), 2004, have seen substantial changes over 12 years and now come across as a comprehensive and coherent law The Cenvat Credit Rules (CCR), 2004, ,
Abatements and Composision under service tax September 5th, 2012 121 Composition Schemes , under same or different contract (composition scheme) Cenvat credit of input services and capital goods is available Cenvat credit on food items (covered under Chapters 1 to 22 of CETA) not available .
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