Service Tax on Reverse Charge Mechanism, Service Tax

[Ashwani Rustagi]

Can you please advise whether we need to pay service tax on the following items under Reverse Charge mechanism for the amount payable to indivisual or firm:

1. Printing & Stationary - specifically printed stationary for the company;

2. Rent of photocopying machine & photocopy charges

3. Purchase of Uniform with company logo on this.

 

Thanks,

Ashwani Rustagi

9810013724

Posts / Replies

[ANAND SHEMBEKAR]

Dear Ashwani Rustagi

In case of transactions referred by you, We have to see the bills and contract in between your company and service providers , because these are very special cases may involve works contract ( under state law / Central Law )

Thanks

 

ANAND M SHEMBEKAR

CELL 9421187122

 

[Pradeep Khatri]

Replies to your queries:-

1) There would not be any service tax will be applicable on printing & stationery items specifically printed for the use of company.  It was held in the Thompson Press case by the Punjab and Haryana high court that it would come under the  purview of works contract tax under VAT Laws.

2) On renting of phocopying machine and photocopy charges both VAT and service tax is payable.  Ratio would be depend on the nature of contract.

3) On purchase of Uniform on which company's logo have been engraved there would not be any service tax involve but WCT under  VAT Law may applicable.