Some queries related to Service Tax

[Mridul Sethi]

Sir,

Pls give the solution to some queries:-

Q.1 Service provider has no service tax no., then who will pay the service provider tax. Q.2 In Reverse Charge, there is no exemption, any supportive notfn./circular? Q.3 Service tax is payable accural basis, any supportive notfn./circular? Q.4 If Service provider does not pays the service tax, then what is our liability? Q.5 What is the meaning of abated/non abated value regarding Motor Vehicle service in notification no 30/2012, Q.6 Clarification on Service provided by director of a company-Which payment is taxable? Q.7 Pls explain Business auxiliary services with some example? Q.8 Can we take the credit of above input services,  any supportive notfn./circular?.  

Regards,

Mridul Sethi

[YAGAY andSUN]

Replies:-

1. If the service provider has not crossed the threshold limit, then, he can take the benefit of it, otherwise he has to get himself registered with the concerned department. 
2. Under reverse charge there is no exemption for service recipient if the service provided by LLP etc.
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4. In partial reverse charge mode you are liable to pay service tax up-to the your liability only.
5. Abated value means no cenvat credit availed on the motor vehicle and non abated valued mean CENVAT credit had been availed on motor vehicles while providing the taxable services.
6. Sitting fee, commission, bonus, share in profit and benefit in form of ESOPs etc. will be taxable and to be paid by companies for the services provided by  non whole time directors.
7. Business Auxiliary Service - marketing, sale, promotion of goods produced by client, procurement of goods and services which are inputs for the client, provision of service on behalf of client, service of consignment agent on commission basis etc.
8. Yes, you may avail the Cenvat credit as per the provision of CENVAT credit Rules, 2004 as amended time to time.

 

 

 

AI Summary

Reverse charge clarifies recipient payment obligations and CENVAT credit eligibility for motor vehicle and director services. Registration and payment obligations depend on threshold crossing; providers below threshold may remain unregistered while those above must register and pay. Reverse charge places payment responsibility on the recipient for specified services, with partial reverse charge limiting recipient liability to the prescribed share. CENVAT credit is available subject to the CENVAT Credit Rules, 2004. 'Abated' motor vehicle value means no CENVAT taken; 'non abated' means CENVAT claimed. Payments to non whole time directors and specified business auxiliary services are taxable.