Can Service Tax credit be availed on input service
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
21 May 2010
Client provides two main output service of – 1) Agronomy 2) Commissioning & Installation services, and also produce drip irrigation system.
Can it avail service tax credit from the following services.
AR Securitisation
AS related valuation
Certification work related to export
Company Secretory
Credit rating - dealer credit evaluation
Credit rating agency
Forex advisor
Hotel charges
HR Consultant
Legal consulatant/Lawyer
Sales Tax Consultant
Statutory Auditor and Tax Auditor
Transfer Pricing and Tax representative
US GAAP advisor
Can it avail service tax credit from the following services.
AR Securitisation
AS related valuation
Certification work related to export
Company Secretory
Credit rating - dealer credit evaluation
Credit rating agency
Forex advisor
Hotel charges
HR Consultant
Legal consulatant/Lawyer
Sales Tax Consultant
Statutory Auditor and Tax Auditor
Transfer Pricing and Tax representative
US GAAP advisor
21 May 2010
yes , he can
Message likes :
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Querist : Anonymous
Querist :
Anonymous
(Querist)
21 May 2010
?
18 July 2024
Service tax credit can generally be availed on input services that are used or intended to be used in providing or facilitating the output services on which service tax is payable. However, whether specific input services qualify for credit depends on their nexus with the output services provided by your client. Here’s a brief overview based on the services listed:
1. **AR Securitisation**: This could potentially be eligible if it is related to financial or management consulting services directly connected to the output services provided.
2. **AS related valuation**: Likely eligible if related to valuation services connected to the output services.
3. **Certification work related to export**: Generally eligible as it is directly related to the output service (export-related services).
4. **Company Secretory**: If related to corporate advisory services or compliance directly related to the output services, it could be eligible.
5. **Credit rating - dealer credit evaluation**: Potentially eligible if directly connected to financial services provided.
6. **Credit rating agency**: Similar to above, if directly related to financial services provided.
7. **Forex advisor**: Eligible if it relates to advisory services directly connected to the output services.
8. **Hotel charges**: Generally not eligible unless they are for specified services like conferences related to the output services.
9. **HR Consultant**: Eligible if directly related to HR services provided as output services.
10. **Legal consultant/Lawyer**: Eligible if related to legal advisory services directly connected to the output services.
11. **Sales Tax Consultant**: Eligible if related to sales tax advisory services directly connected to the output services.
12. **Statutory Auditor and Tax Auditor**: Eligible if related to auditing or tax advisory services directly connected to the output services.
13. **Transfer Pricing and Tax representative**: Eligible if related to transfer pricing or tax advisory services directly connected to the output services.
14. **US GAAP advisor**: Eligible if related to advisory services on accounting practices directly connected to the output services.
**Conclusion:**
Service tax credit can generally be availed on input services that have a direct or indirect nexus with the output services provided by your client. It’s essential to maintain proper documentation and ensure that the services claimed as input services are indeed used in or in relation to the output services. Specific eligibility should be verified with a tax professional considering the nature and specifics of each service in relation to your client’s business activities.
1. **AR Securitisation**: This could potentially be eligible if it is related to financial or management consulting services directly connected to the output services provided.
2. **AS related valuation**: Likely eligible if related to valuation services connected to the output services.
3. **Certification work related to export**: Generally eligible as it is directly related to the output service (export-related services).
4. **Company Secretory**: If related to corporate advisory services or compliance directly related to the output services, it could be eligible.
5. **Credit rating - dealer credit evaluation**: Potentially eligible if directly connected to financial services provided.
6. **Credit rating agency**: Similar to above, if directly related to financial services provided.
7. **Forex advisor**: Eligible if it relates to advisory services directly connected to the output services.
8. **Hotel charges**: Generally not eligible unless they are for specified services like conferences related to the output services.
9. **HR Consultant**: Eligible if directly related to HR services provided as output services.
10. **Legal consultant/Lawyer**: Eligible if related to legal advisory services directly connected to the output services.
11. **Sales Tax Consultant**: Eligible if related to sales tax advisory services directly connected to the output services.
12. **Statutory Auditor and Tax Auditor**: Eligible if related to auditing or tax advisory services directly connected to the output services.
13. **Transfer Pricing and Tax representative**: Eligible if related to transfer pricing or tax advisory services directly connected to the output services.
14. **US GAAP advisor**: Eligible if related to advisory services on accounting practices directly connected to the output services.
**Conclusion:**
Service tax credit can generally be availed on input services that have a direct or indirect nexus with the output services provided by your client. It’s essential to maintain proper documentation and ensure that the services claimed as input services are indeed used in or in relation to the output services. Specific eligibility should be verified with a tax professional considering the nature and specifics of each service in relation to your client’s business activities.
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