Hi, B ltd cannot utilise the 12.36, if B ltd has not made the payment of Rs. 112.36. Payment is very important factor in case of Service tax set off/ credit in terms of utilization.
Thanks & Regards, Kiran Takke On Wed, Nov 5, 2008 at 1:03 PM, K.Sankarasubramanian (Finance/TVS-E) < [EMAIL PROTECTED]> wrote: > *A Ltd and B Ltd are associated enterprises as referred in Service Tax > law* > > * * > > *A Ltd raised an Invoice on B Ltd for Rs 112.36 on 10.10.2008 (Basic = Rs > 100 and Service tax/cess = Rs 12.36)* > > * * > > *Payment for the Invoice was not received till 31.10.2008* > > * * > > *So A Ltd included the Invoice value in the taxable turnover for Oct 2008 > and paid the Service Tax to the Govt on 05.11.2008* > > * * > > *B Ltd in turn also accounted the Invoice in Oct 2008 in their books and > utilised the Service Tax Input Tax credit of Rs 12.36 in Oct 2008 on this as > the transaction is between associated enterprises* > > * * > > *Is the action of B Ltd correct or not? Relevant statutory provisions > below* > > * * > > *Pl give your views with case law or statutory references* > > * * > > *Thanks* > > * * > > *KSS**/5.11.2008* > > * * > > *Sec 67(1)(i) :: Service tax is chargeable on any taxable service with > reference to the gross amount charged by the service provider for such > service provided or to be provided by him* > > * * > > *Sec 67(4)(c) :: "gross amount charged" includes payment by cheque, credit > card, deduction from account and any form of payment by issue of credit > notes or debit notes and 'book adjustment, and any amount credited or > debited, as the case may be, to any account, whether called "Suspense > account" or by any other name, in the books of account of a person liable to > pay service tax, where the transaction of taxable service is with any > associated enterprise. [ Inserted vide Finance Bill 2008, w.e.f. 16th May, > 2008 ]* > > * * > > *Sec 65(7b) :: "associated enterprise" has the meaning assigned to it in > section 92A of the Income tax Act, 1961; [Inserted vide Finance Bill 2008 > w.e.f. 16th May, 2008* > > * * > > *K Sankarasubramanian * > > *Taking IT to the heart of India* > > *Senior Manager - Finance* > *TVS Electronics Limited > *DP,34 South Phase, > Industrial Estate, Guindy, > Chennai 600 032. India. > > Tel : +91-44-22321166 > Fax : +91-44-22327577 > Mob : +91-98400 93176 > Mail : [EMAIL PROTECTED] > Web : www.tvs-e.in > ------------------------------ > The information transmitted is intended only for > [email protected], [EMAIL PROTECTED], > [EMAIL PROTECTED], [EMAIL PROTECTED], > [EMAIL PROTECTED], [EMAIL PROTECTED], [EMAIL PROTECTED], > [EMAIL PROTECTED], [EMAIL PROTECTED], > [EMAIL PROTECTED], [EMAIL PROTECTED], > [EMAIL PROTECTED], [EMAIL PROTECTED], > [EMAIL PROTECTED], [EMAIL PROTECTED], > [EMAIL PROTECTED], [EMAIL PROTECTED], [EMAIL PROTECTED], > [EMAIL PROTECTED], [EMAIL PROTECTED], > [EMAIL PROTECTED], [EMAIL PROTECTED], [EMAIL PROTECTED], > [EMAIL PROTECTED], [EMAIL PROTECTED], [EMAIL PROTECTED], > [EMAIL PROTECTED], [EMAIL PROTECTED], > [EMAIL PROTECTED], [EMAIL PROTECTED], [EMAIL PROTECTED], > [EMAIL PROTECTED], [EMAIL PROTECTED], > [EMAIL PROTECTED], [EMAIL PROTECTED], > [EMAIL PROTECTED], [EMAIL PROTECTED], [EMAIL PROTECTED], > [EMAIL PROTECTED], [EMAIL PROTECTED], [EMAIL PROTECTED], > [EMAIL PROTECTED], [EMAIL PROTECTED] and may contain > confidential / privileged material. Any review, retransmission, > dissemination or use, in part or in full of this information by any other > than the intended recipient is prohibited. If you have received this in > error, please return to [EMAIL PROTECTED] and delete the > material. This mail is virus protected. However please virus scan before you > open or detach documents from this transmission. We are not liable for any > damages that may occur caused by any virus. > > > > > > --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups "Skorydov MyTaxAssistant Member Group" group. To post to this group, send email to [email protected] To unsubscribe from this group, send email to [EMAIL PROTECTED] For more options, visit this group at http://groups.google.com/group/SkorydovMyTaxAssistant?hl=en -~----------~----~----~----~------~----~------~--~---
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