Saswatabanerjee
Partner - Risk Management
Shishirs
Employee
Pon1965
Construction
RAMAKANT R
Accounts Manager
+1 Other

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Dear Seniors,
Please suggest.
We are a HR service provider organization, we had purchased some stamp papers for our employees to take some affidavit/declarations who are based at client office, we are going to claim the amount from client.
Please suggest whether Service Tax will be applicable on this transaction or invoice will raise without Service Tax.
Regard's
Shishir

From India, Madras
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
But the licensed stamp vendors will charge some commission on the sale of stamp papers. I don’t know the %. Pon
From India, Lucknow
Respected Pon Sir,
The stamp vendor is not allowed to charge anything to the purchaser. He is getting the commission from Government. The worries of Stamp Vendor is they are getting Commission from Government and this commission if eligible for TDS Deduction. Also the vendors have to pay Pofessional Tax also as per rule.
Ramakant

From India, Pune
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 any way

From India, Mumbai
Mr. Shishir, What Ramakant said is right
the amount collected by licensed stamp vendor is commission. It does not related to service tax.
In fact the Stamp Vendor has to collect the same amount of stamp value. Excess amount collected by him is his commission.

From India, Kurnool
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