CCI Online Coaching    |    x

Service tax input credit rules


31 August 2012

Dear Experts,

I have one doubt, pls. help me in this.
Suppose if company is into trading business on which VAT charged & also into service business on which service tax charged. however they are not maintaining seperate books of accounts of two business, so how can we claim set off of service tax paid on common input services. what should be formula to claim input credit set off under this condition.

Second in reverse charge mechanism applicable from 1-7-12 can service receiver claim set off of his share of service tax, or whether he has to pay without setoff.

Pls. advice me urgently.

Thanks in anticipation.

Shrenik Shah

N Jain (Expert)
02 September 2012

There is no requirement to maintain separate books of accounts for entity engaged in business of sale of goods with VAT and providing service on which service tax is applicable.

You can avail CENVAT on all the input services and Excise duty on Goods and Capital Goods used in or in relation to provide taxable service
Reverse charge is required to be paid in cash but CENVAT credit can be clauimed for such payment to be adjusted against service tax otherwise payable

You need to be the querist or approved CAclub expert to take part in this query .

Click here to login now

Similar Resolved Queries :

× Online Coaching My Enrolled Courses
Articles Forum News Experts Exams Share Files Income Tax Accounts Career Corporate Law Service Tax Video Judgements Rewards Top Members Events Albums Find Friends Featured Feed Scorecard Bookmarks Mock Test Poll Notification Knowledge Finder Coaching Institutes Trainee Corner Jobs
close x