26 May 2008
A bank provides taxable as well as exepmted sevices. but does not maintain seprate books for that.now if bank pay service tax on input service like hire expenses of car for there employees n it is not possible to provide direct relationship between taxable output services n car hire expenses can bank can bank utilise credit on hire expenses of car?
26 May 2008
you will utilised maximum 20% of output service for taking credit of input service f e out put service tax is 100 then you will get setoff of rs 20 for input service,if input service is greater than output service i e rs 20 then you will carryforward the same for next period
26 May 2008
in my opinion, there is no need to establish correlation between input and output services in cenvat credit rules. credit is allowed as and when payment for service is made.
CAclubindia
