service tax payament-reg

[Ramakrishnan Seshadri]

Dear Sir,

We had a a doubt. We have received a bill from our advocate during the month of july and paid him immediately.. They have not charged service tax in their bills. They have mentioned that service tax has to be paid by the service receipient . We have not calculated the service tax and payment has not been made on 6th August. We found that the payment has not been made. Now we want to pay service tax. Whether interest has to be paid for this delay or not.

Kindly experts clarify.

Thanks & Regards,

S.Ramakrishnan

[KASTURI SETHI]

Sh.Seshadri Ji,

As per first proviso to Rule 7 of Point of Taxation Rules, 2011, you were required to pay Service Tax by 6.8.2016 as you have already made the payment of the bill. You will have to pay interest.

RCM is applicable only if recipient of service is business entity and registered as body corporate under the Company Act and Service Provider is individual, proprietorship HUF, Partnership, AOP etc. Otherwise not.

[Ramakrishnan Seshadri]

Dear Sir,

We are a body corporate registered under companies act and service provider is a firm. Then what will be the case sir.

Thanks & Regards

S.Ramakrishnan

[KASTURI SETHI]

Sir,

You are required to pay ST under RCM. Now deposit ST along with interest.

[Ganeshan Kalyani]

Sir, I fully agree with the views of Sri Kasturi Sir. Thanks.

[AMAR SHUKLA]

sir an individual given ambulance on monthly rent to hospital and hospital operate as per their requirments can update up any service tax liabilities on individual due to service tax exempt on hospital running ambulance service

A N Shukla

[KASTURI SETHI]

Sh.Amar Shukla Ji,

This is a new query and post it afresh under new Issue ID so that it should come to the notice of all experts. You will get fool proof reply in this way.

[AMAR SHUKLA]

sir an individual given ambulance on monthly rent to hospital and hospital operate as per their requirments can update up any service tax liabilities on individual due to service tax exempt on hospital running ambulance service

A N Shukla

[KASTURI SETHI]

Sh.Shukla Ji, For your guidance pl.

7. New Exemptions :

7.1 Hitherto, any service provided by way of transportation of a patient to and from a clinical establishment by a clinical establishment is exempt from Service Tax. The scope of this exemption is being widened to include all ambulance services.

(Amended in the entry at S. No. 2 of notification No. 25/12-S.T. refers).

2012 (25) S.T.R. 65 (Tri. - Del.) = 2011 (7) TMI 831 - CESTAT, NEW DELHICOMMISSIONER OF C. EX., ALLAHABADVersusSURYA BHAN TRIPATHI

2010 (19) S.T.R. 208 (Tri. - Del.) = 2010 (4) TMI 385 - CESTAT, NEW DELHIBACHAN SINGH SALOOJAVersusCOMMISSIONER OF CENTRAL EXCISE, JAIPUR

 

 

[KASTURI SETHI]

Sh.Shukla Ji,

It is neither intention of Govt. nor the legislature to levy Service Tax on Ambulance Services as ultimately burden of ST is to be borne by the consumer (patient). Whether ambulance service is provided by Govt. hospital or private hospital, this service is not provided free of cost. Ambulance charges are recovered from the patient by these hospitals but no ST is collected in these charges, these being exempted vide Notification No.25/12-ST as amended.(Entry No.2 refers). Ambulance is meant for transportation of the injured or sick persons and hence ambulance services are covered under emergency medical services. Such charges recovered from the patient by the hospital are paid to you because you have rented the same to the hospital. If ST is levied on ambulance service axe of ST would fall on the patient.It makes no difference whether you provide ambulance services direct to the patient or through hospital. Ultimate purpose is transportation of injured or sick person to the hospital. Renting of ambulance is out of ambit of 'Rent-a-cab services', 'Renting of Motor Vehicles' and 'Right to Use of Tangible goods'.

In my views, renting of ambulance is covered under Entry No.2 of Notification No.25/12-ST as amended vide notification no.6/15-ST dated 1.3.15effective from 1.4.15.

AI Summary

Corporate Entity Must Pay Delayed Service Tax with Interest Under RCM; Ambulance Services Remain Tax-Exempt. A corporate entity received a bill from their advocate in July without service tax included, as the advocate stated the tax should be paid by the recipient. The corporate entity failed to pay the service tax by the due date of August 6 and inquired about the necessity of paying interest on the delayed payment. An expert clarified that the entity must pay the service tax along with interest, as they are a body corporate and the reverse charge mechanism (RCM) applies. Additionally, a separate query about ambulance service tax exemption was addressed, confirming such services are exempt under specific notifications.