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Input tax credit of service tax

Kuldeep Agarwal (Deputy Manager) (24 Points)

28 July 2016

can we avail input tax credit 1.67% on total service tax charged by the vendor in his bill.

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2 Replies

Sundararajan S (Final Student of ICAI) (1764 Points)
Replied 28 July 2016

If you have not adopted abatement for the service which you provide, you can take provided such credit is allowed by the Act.

Rucha A (Sr. Associate-Audit and Taxation) (174 Points)
Replied 29 July 2016

Hi. As long as the services are the same as covered by rule 2(l) of cenvat credit rules, 2004 and as previously stated by Sundarajan, the payment thereon is not made by availing abatement, you can take the credit. Nature of service does matter for availing credit.