Page 102 - DCOM308_DCOM502_INDIRECT_TAX_LAWS

Unit 6: Service Tax

B : Total value of taxable sales for a period including zero rated sales, excluding VAT. Notes
C : Total value of sales including tax free sales, excluding VAT.
8. A taxable person can claim input tax credit with return for each tax period. If the claim for
input tax credit exceeds the amount of output tax in that return, input tax credit shall be
carried forward to next return period.

9. The net tax payable by a VAT dealer claiming input tax credit shall be:
Output tax – Input tax = Net tax.
Input tax shall include the input tax credit carried forward from previous return period.

10. Input tax credit is non-transferable, i.e., it cannot be transferred from one taxable person to
another.

11. Section 14 of the Punjab VAT Act, 2005 provides for input tax credit on the tax paid under
sec. 5(1A) and on Schedule D goods under the PGST Act, 1948 during the past one year.
Taxable person shall be entitled to claim Input Tax Credit on the goods in hand on the
appointed day if the purchases were made within twelve months prior to the appointed
day and the goods have suffered tax under the PGST Act, 1948. However, all taxable
persons having stock of tax paid goods on the appointed day shall have to get their stocks
authenticated, by submitting details in prescribed proforma upto 30.04.2005, and getting
the same verified from the concerned Assessing Authority and produce/secure
documentary evidence of tax paid on such stock.

12. ITC is not available for exempted units. Instead an exempted unit is entitled to refund of
tax paid or payable by it on purchases made from a taxable person with in the State, for use
in manufacturing, processing or packing of taxable goods. This refund is available only if
the dealer having Exemption has filed correct returns as per provision of the rules of 1991.
The unit shall make an application for refund.

Notes If a taxable person is making taxable and tax free sales, he would be entitled to
claim input tax proportionate to his taxable sales using the following formula:

(A × B)/C

6.8 Procedure for Service Tax Registration

1. The assessee shall make an application in form ST 1 to the Superintendent of Central
Excise in duplicate. Such application can be filed online www.aces.gov.in. For this the
following procedure shall be adhered to:

a. The user shall first log onto the site aces.gov.in and select "Service Tax" option on the
left side of the screen
b. He shall then register himself by clicking on "New users to click here to register
with ACES" option. On clicking the same he will be required to give certain basic
details and a e-mail id. The password for such registration will be sent to this mail
id.
c. On submitting the form the password will be sent to the ID above and the user shall
login into ACES with this password. Such a password is only to gain access to ACES
and it does not imply that registration with the department is done.

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