TMI BlogService tax on site preparation & clearance work contractX X X X Extracts X X X X X X X X Extracts X X X X ..... Dear Sir, Please explain service tax on Site preparation Clearance work contract. I have received same work invoice with service tax calculating on gross value. Is it ok or not?? Thanks Regards, Sanjay Vasava - Reply By YAGAY AND SUN - The Reply = 072 65(105)(zzza) Site formation and clearance, excavation and earthmoving and demolition Notificatios ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Circulars - Reply By Ganeshan Kalyani - The Reply = The said service does not fall under exemption list , not fall under reverse charge, not even in negative list of service. Hence it is taxable service under forward charge. Thanks. - Reply By YAGAY AND SUN - The Reply = If the service provider has not crossed the Threshold limit then charging Service Tax is not O.K. otherwise it i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s O.K. - Reply By Ganeshan Kalyani - The Reply = Yes, the service tax calculated on gross amount is correct. Since he has charged full service tax please check whether he has got registration number and the same is mentioned on the face of the invoice. - Reply By Ganeshan Kalyani - The Reply = Mentioning certain information on face of invoice is essential , inter alia registration number. Als ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o the registration number mentioned on the face of invoice can be checked in https://cbec-easiest.gov.in/EST/AssesseeVerification.do - Reply By Ganeshan Kalyani - The Reply = The location of service provider and service receiver is also important. See place of provison of service rules. May reverse charge also become applicable. - Reply By YAGAY AND SUN - The Reply = It is settled legal posit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion that charging of service tax without getting the registration certificate is an offence and this is the basic requirement to check the registration certificate at the time of negotiating for Service Order. Such checking should be done either at the time of negotiation or under Risk Management Policy of the company. - Reply By Ganeshan Kalyani - The Reply = Agreed. But there are situation wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en the service requirement is very urgent and thus the service receiver agrees to create service vendor account in his books of account without getting service tax registration certificate copy. Later on after service is availed then the provider delays or gives various reason on not to give a copy of registration certificate copy. The problem arises then. Hence the check points is necessary ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to be checked upon. - Reply By YAGAY AND SUN - The Reply = Generally the service recipients do not conduct any businesses with the service providers, if they are not registered with the Service Tax Department as the Policy of Risk Management System to mitigate /reduce the risk at very first level. They insist to the service provider either to provide declaration that they had not crossed the t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hreshold limit or get the registration with the Service Tax Department. - Reply By Ganeshan Kalyani - The Reply = Agreed but there are so many unorganized sector where internal policy of risk management is not in place. Also where the businesses are carried on in a rural area or remote area, the receiving of service by factory set up there in critical situation is essential. At that time it is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... practically not viable to check for compliance first and then get the service. But the production is essential and therefoe availing service is on top priority. Thus checking of check point as states in my previous reply is essential. - Reply By YAGAY AND SUN - The Reply = Being a profession we know if not in compliance mode, what happens? Provisions of Finance Act are stringent. Rate of int ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erest is high. Then why to take chances, when by adherence with the compliance makes life easy in tax matter? - Reply By Ganeshan Kalyani - The Reply = Good thoughts expressed. In fact this should be punch line of every business / assessee. - Reply By YAGAY AND SUN - The Reply = Along with thoughts, our Karmas (Work) are also pure, superb and authentic. - Reply By Ganeshan Kalyani - The Repl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y = Self praise - Service tax on site preparation & clearance work contract - Query Started By: - Sanjay Vasava Dated:- 24-9-2016 Service Tax - Got 14 Replies - Service Tax - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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