can one get cenvat credit of bank's service tax charges against any service provided??
SUNIL
(ACCOUTANT)
(167 Points)
Replied 04 January 2012
Any input service that relates to texable service is utilise for the payment of service tax.
CA Prabhat Gupta
(Manager (Indirect Taxes))
(821 Points)
Replied 04 January 2012
Yes, Cenvat Credit is available on such services. But as there is some relaxation for providers of banking service, they generally do not issue serially numbered invoices. So it is always better to obtain a Certificate from bank with details of service tax charged and other basic details as required under Rule 4A of Service Tax Rules, 1994 and its proviso.
Mr. Prashant Rawade
(Student)
(21 Points)
Replied 04 January 2012
CA Prabhat Gupta
(Manager (Indirect Taxes))
(821 Points)
Replied 05 January 2012
There is no formula for calculating Service Tax Credit. Whatever Service Tax appears as charged on invoices relating to input services can be used as Service Tax Credit. It is only when you are providing Taxable a.w.a. exempted services you need to take proportionate credit of input services.
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