Dear Seniors,
Please suggest.
We are an HR service provider organization. We had purchased some stamp papers for our employees to make affidavits/declarations while they are based at the client's office. We are planning to claim the amount from the client.
Please advise on whether Service Tax will be applicable to this transaction, or if the invoice will be raised without Service Tax.
Regards,
Shishir
From India, Madras
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Please suggest.
We are an HR service provider organization. We had purchased some stamp papers for our employees to make affidavits/declarations while they are based at the client's office. We are planning to claim the amount from the client.
Please advise on whether Service Tax will be applicable to this transaction, or if the invoice will be raised without Service Tax.
Regards,
Shishir
From India, Madras
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Dear Shishir, It is paid as per INDIAN STAMP ACT, 1899. This is some type of Duty only. It will not attract any service tax. Sale and Purchase of Stamps is not falling under any Services. Ramakant
From India, Pune
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71From India, Pune
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But the licensed stamp vendors will charge some commission on the sale of stamp papers. I don’t know the %. Pon
From India, Lucknow
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From India, Lucknow
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Dear Sir,
The stamp vendor is not allowed to charge anything to the purchaser as they receive a commission from the Government. One concern for stamp vendors is that this commission is eligible for TDS deduction. Additionally, vendors are required to pay professional tax in accordance with the rules.
Thank you,
Ramakant
From India, Pune
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The stamp vendor is not allowed to charge anything to the purchaser as they receive a commission from the Government. One concern for stamp vendors is that this commission is eligible for TDS deduction. Additionally, vendors are required to pay professional tax in accordance with the rules.
Thank you,
Ramakant
From India, Pune
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I hope I am reading your case correctly.
You have bought stamp paper for a legal document to be signed by employees at a client location. Further, you are going to charge that amount to the client. You need to raise an invoice on the client for the stamp paper and costs of filing the legal document. In that case, you will need to add service tax to your invoice.
However, if you are raising a debit note, and the circumstances fall under the conditions laid down in the Continental Case, then you do not have to charge service tax. The amount will not be large, so why take a risk. The client will probably get a set off anyway.
From India, Mumbai
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You have bought stamp paper for a legal document to be signed by employees at a client location. Further, you are going to charge that amount to the client. You need to raise an invoice on the client for the stamp paper and costs of filing the legal document. In that case, you will need to add service tax to your invoice.
However, if you are raising a debit note, and the circumstances fall under the conditions laid down in the Continental Case, then you do not have to charge service tax. The amount will not be large, so why take a risk. The client will probably get a set off anyway.
From India, Mumbai
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Mr. Shishir, what Ramakant said is right. The amount collected by the licensed stamp vendor is a commission. It is not related to the service tax. In fact, the stamp vendor has to collect the same amount of the stamp value. Any excess amount collected by him is his commission.
From India, Kurnool
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From India, Kurnool
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Service Tax.pdf