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Set off of service tax prior to registration

LAKSHMI RATHI (retired) (21 Points)

23 February 2017

I have an immovable property for which I have been paying maintenance charges where service tax was levied. The property was given on rent from Dec 2016 and have been collecting service tax which I need to pay half yearly as an individual.I registered in Jan 2017 and got the service tax no. Can I take a setoff of the service tax which has been paid from April 2016 till Nov 2016 (prior to my registration date but for the same financial year)

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5 Replies

Sandeep (ASST.MANAGER ACCOUNTS) (1751 Points)
Replied 23 February 2017

NO. YOU ARE ELIGIBLE FOR CREDIT AND PAYMENT ONLY FROM THE DATE OF REGISTRATION.

CA Devendra KUMAR (Chartered Accountant) (172 Points)
Replied 23 February 2017

no, you can take only credit of input service which are received after registration

sivaram (Asst Mgr-Taxation) (6918 Points)
Replied 23 February 2017

maintenance charges cannot br setoff against rent while discharging your service tax only the property tax paid or any other municipal taxes paid can be reduced from the grossrent and on which service tax is computed and paid wait for the experts to answer

vaibhav samdani (-) (26 Points)
Replied 25 February 2017

You can avail cenvat credit anytime but before one year from invoice date. Thus if you have taken ST REG in January 17, you can take cenvat on expenses paid between April 16 to December 16. A

Also you require to pay service tax monthly and not half yearly.

Thanks.