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SERVICE TAX INPUT CREDIT
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....ERVICE TAX INPUT CREDIT<br> Query (Issue) Started By: - chandrashekhar bathini Dated:- 11-2-2016 Last Reply Date:- 12-2-2016 Service Tax<br>Got 6 Replies<br>Service Tax<br>a company providing construction services to rail vikas nigam limited in ap, this service is exempt from service tax because it providing services to railways. company receiving manpower services and that company charging sevi....
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....ce tax in their invoice ,my query is we are not paying any output service tax so that we do not pay sevice tax on manpower service received please give the answer for my query thanking you Reply By KASTURI SETHI: The Reply: At present 100% Service Tax liability is on the service receiver in respect of Supply of Manpower. However, I request you to elaborate your query so as enable the experts ....
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....to give fool-proof reply. Reply By Akash Deep: The Reply: Dear Chandrashekhar, Just because your output service is non- taxable or wholly exempted from levy of service tax your input services do not automatically becomes exempted or non taxable- you need to look at the taxability of input services independently. if the input service (i.e. supply of manpower) is taxable and covered under revers....
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....e charge mechanism (i.e. service provider is an individual or huf or partnership firm and receiver is a business entity registered as a body corporate). you should pay tax without being affected by the fact that your output services are exempted. The illustration added to section 66F w.e.f 14.05.2015 need to be refrred. "the services by the reserve bank of India, being the main service withi....
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....n the meaning of clause (b) of Section 66D, does not include any agency service provided or agreed to be provided by any bank to the Reserve bank of India . such agency services , being input service used by reserve bank of India for providing the main services, for which the consideration by way of fee or commission or any other amount is received by the agent bank, does not get excluded from lav....
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....y of service tax by virtue of inclusion of main service in clause (b) of negative list in section 66D and hence, such service is leviable to service tax." Regards Akash Deep Reply By Rajagopalan Ranganathan: The Reply: Sir, An excellant reply given by Shri. Akash Deep Sir. Reply By Ganeshan Kalyani: The Reply: The query is nicely replied. Thanks Reply By KASTURI SETHI: The Reply: I al....
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....so agree with Sh.Akash Deep, Sir. Beautifully explained. No doubt concept must be clear to the querist now. Reply By chandrashekhar bathini: The Reply: Thank you so much akash sir, my dout is clarified.<br> Discussion Forum - Knowledge Sharing ....