TaxTMI 
TaxTMI 
SERVICE TAX ON SOFTWARE DEVELOPMENT AND CONSULTING EXPENSES
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....ERVICE TAX ON SOFTWARE DEVELOPMENT AND CONSULTING EXPENSES<br> Query (Issue) Started By: - LILUWENDRA CHATURVEDI Dated:- 14-6-2014 Last Reply Date:- 31-8-2014 Service Tax<br>Got 5 Replies<br>Service Tax<br>We are paying Rs 65,000.00 Per Month to consultants on account of development of software consultancy for maintenance. Service tax is applicable but the service provider do not charge. Please ....
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....clarify following: Are we liable to pay service Tax as service receiver? If yeas . What will be percentage. Will it be under maintenance and repair As 70 percent ? Regards L.K.Chaturvedi Reply By Pradeep Khatri: The Reply: Dear Liluwendra, You are not liable to pay the service tax under reverse charge mechanism as these services are not covered under Notification No. 30/2012-ST/20-06-2012 ....
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....w.e.f. 01-07-2012. Further, it may be possible that the service provider is availing the benefit of threshold limit. Please check the facts from the service provider. Regards Team YAGAY & SUN (Management & Indirect Tax Consultants) Reply By Madhukar N Hiregange: The Reply: First of all it is assumed that the services are from within India. Maintenance of software as understood today is not a ....
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....works contract. As long as you have the correct address of the service provider and are paying by cheque it would be said that due care has been taken. If he is not paying then you are not liable. Reply By LILUWENDRA CHATURVEDI: The Reply: Dear Mr.Pradeep Khatri Thanks for your reply . I m fully convinced . Regards Chaturvedi Reply By LILUWENDRA CHATURVEDI: The Reply: Dear Sir, Please conf....
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....irm whether we can avail Cenvat Credit of Service tax paid under VCES scheme. Suppose one service provider have paid Service tax Rs 75000/ in Dec 2013 and balance Rs 75000/- in May2014 in case of past liability upto Dec 2012. Can We avail Cenvat Credit of Rs 1,50'000.00? is there any time limit ? If so please advise. Regards L.K.Chaturvedi Chaturvedi Reply By Pradeep Khatri: The Reply: D....
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....ear Liluwendra, You can avail the CENVAT credit after following the provisions of VCES and CENVAT credit Rules, 2004 as amended from time to time. Regards YAGAY and SUN (Management and Indirect Tax Consultants)<br> Discussion Forum - Knowledge Sharing ....