26 May 2015
A company is involved in provision of taxable and exempted services. 95 of its turnover is taxable turnover and hence they started claiming 95 of service tax as input.. But in the case of service received through reverse charge, they have been claiming at 100. Is this practice right??.. Please explain
26 May 2015
No. This is not at all correct. you should take input of only that services which are used in providing taxable output services . Though you have paid under reverse charge also. U should not able to claim input credit.
CAclubindia
