utilisation of Service tax credits - reg

[PONNADA B K RAVIKUMAR]

We have accumulated to a large extent the portion of availed service tax credits than our on service tax liability as on 31-3-2010, This balance is so huge that it can service our IMPORT duty requirement for a year. We would like to know if this adjustment of Service tax to Import duty is possible and if so please quote the relevant rules and notifications for our benefit.

[CA. Shivani Shah]

You can avail refund of the same from the department for the entire amount if you are engaged in exports. For any further queries pls call on 9830402305

[PONNADA B K RAVIKUMAR]

we are sponsoring one event , which is going to happnen in the month of July'10 my query is whether we have to deduct the tds or not, if you under which section 194c or j another whether we have to account in june or july'10 pls reply asap

AI Summary

Service tax credit utilization queried: adjustment to import duty versus refund for exporters, and TDS timing on sponsorship. Excess available service tax credits and whether they may be adjusted against import duty versus reclaimed by refund is queried; a practitioner reply notes refund is available where the taxpayer is engaged in exports. Separately, the taxpayer asks whether sponsorship payments attract Tax Deducted at Source under contract payment rules (section 194C) and whether withholding/accounting arises in the month of the event or earlier.