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SERVICE TAX CREDIT

Jiwan singh (service) (393 Points)

13 June 2008

Can I take credit of SERVICE TAX (Input service)

1- Stationery (AMC of Photocopy machines or monthly charges of Photocopy machines)

2- Courier charges ( all correspondence of company)

3- Traveling exp. ( service tax on hotel bills of client and employee (employee gone for business purpose)

4- Import / Export exp.

5- Mobile bills

What is the CONCEPT of Service tax credit , Please detailed

Can we take credit of all input service tax, whether its used for production,marketing,account & other

Thanks & Regards

Jiwan singh

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2 Replies

Vijay Chitte (Service) (173 Points)
Replied 14 June 2008

Yes, You can take all input service tax credit, which is related to your business. If you are not providing any exempted service u can take all eligible service tax credit as quated in your query. If you are providing taxable as well as exempted service you can not take 100% credit. For that you have to follow the rule 6 of Cenvat credit rules.