Procedure to shown R&D Cess and S.Tax on Royalty, Service Tax

[RAM NAUDIYAL]

Dear Experts,

What is the procedure of service tax on royalty and R&D Cess to show in service tax return. As per service tax rule we have to pay 5% R&D cess and balace 7% in service tax on royalty. Secondly can we take cenvat credit of 7% service tax on royalty. Pl. advice.

Thanks

Posts / Replies

[JAMES PG]

First of all R&D Cess is not payable under ST Rules.It is payable under section 3 of the Research and Development Cess Act, 1986 (32 of 1986)R&D Cess Act. Amount paid towards R&D Cess can be claimed as exemption from ST payable as per Not 14/2012-ST dated 17.03.12. While filing ST-3 Return, this notification can be qouted. Cenvat is available as per the eligibility norms of CCR