9911796707
TMI BlogHow to availing Notification no 14/2012 ST - RESEARCH & DEVELOPMENT CESS. - Service TaxX X X X Extracts X X X X X X X X Extracts X X X X ..... How to availing Notification no 14/2012 ST - RESEARCH & DEVELOPMENT CESS. - Service Tax X X X X Extracts X X X X X X X X Extracts X X X X ..... company we make monthly provisions in the books and we are liable to pay service tax on this provisions under head Intellectual property service other than copy rights on this technical assistance fees. We are paying Research and Development Cess under provisions of section 3 of the Research and development Cess Act, 1986 (32 of 1986) to Reserve Bank of India on quarterly basis. We wish to avail ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... benefit of Notification no 14/2012 ST dated 17.03.2012 to adjust Research and Development Cess paid against service tax liability under intellectual property service after fulfilling all conditions. My query is: How will we adjust the R & Cess in below cases. R & D cess is paid in April 15 ₹ 15000 Month Technical assistance fees Service tax Jan-15 ₹ 100000 14000 Feb-15 ₹ 10 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0000 14000 Mar-15 ₹ 100000 14000 April-15 ₹ 100000 0 (liability is 14000 and cess paid is ₹ 15000 Or We have to just pay the service tax after deducting R & Cess Payable each month considering R & D cess will be paid in April 15 Month Technical assistance fees Service tax Jan-15 ₹ 100000 9000 (14000-5000) Feb-15 ₹ 100000 9000 (14000-5000) Mar-15 ₹ 100000 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9000 (14000-5000) Can anyone guide? I hope have clarified my query correctly Same query is posted earilier also but no one is replied. Please replay the query Reply By PAWAN KUMAR: The Reply: Dear Sir, As per my view, as per notification No.14/2012-ST, the service tax is exempt equivalent to R&D cess paid on import of technology subject to condition that the R&D Cess is paid within six month ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s from the date of invoice and on or before the payment for the service. the option 2 can be considered as per my view. as R & D Cess paid on service involving import of technology can only be adjusted for service tax liability towards that particular service. Reply By Rajagopalan Ranganathan: The Reply: Sir, You have to calculate service Tax amount by deducting the R & D Cess rate from Servic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e tax rate. That is, suppose if R & D Cess rate is 5% and Service Tax rate is 14% then effective rate of service tax is 9%. Reply By Keshav Murthy: The Reply: Sir, while discharging service tax on Intellectual service deduct the R&D cess already paid to that extent. Eg. invoice 1 R&D cess paid @ 5% on the same invoice you have to discharge service tax of 9%. further there is option provided in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ST-3 return to adjust R&D cess amount paid. X X X X Extracts X X X X X X X X Extracts X X X X
|
