Business Auxilliary

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This query is : Resolved

Sukhendu Ghosh (Querist)

12 November 2009 I want to know that Service Tax Liability against Business Auxilliary Service is either adjustable with Cenvat credit (Credit available from Input / Capital / Input Service or not. Since the Serice Tax is being deposited in cash through PLA after getting payment from the Party, can we adjust the same with Cenvat credit available in my Cenvat Register? kindly reply. If yes, I want the notification number for this provision.

Vishnu Saboo

Vishnu Saboo (Expert)

15 November 2009 Output service tax liability can be adjusted with input service tax credit, but your input credit should be related to your output liability.
and it can't adjusted with Capital good and Input credit.

Sukhendu Ghosh

Sukhendu Ghosh (Querist)

18 November 2009 Thank you Sir for your kind reply.
Again I need your further suggestion to clarify your valued comments "The Input credit should be related to Output liability". In this context, I want to make it clear that Input Service credit means Cenvat Credit against Service Tax charged by different service giving party in their Bills & my Service Tax Liability stands due to Commission Bill raised by us to another Party & that Service Tax Liability is being deposited to Govt. on payment received basis i.e. after getting payment from the Party. In this case can I adjust this Service Tax liability with the Input Service Tax Credit amount. kindly reply & let me know the Rule / Notification Number which provides this facility.