can we claim service tax paid to bank for loc ?

This query is : Resolved

manisha kejriwal (Querist)
Follow

29 June 2010 I have paid service tax to bank for discounting letter of Credit and i Have claimed the same amount against excise duty payable..The department has refused to admit the claim on the basis that it is not input service tax.. plz help me

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
Follow

29 June 2010 My view, the department is correct. Since the LC are finance purpose taken and paying the charges for the same, In this no input for manufacturing input

other view also solicitied

Shyam Lal Naik

Shyam Lal Naik (Expert)
Follow

29 June 2010 The term input service has been held to be wide in scope in coca cola and other cases. Services used for activities of business like accounting, auditing, financing .. .. are also input services. Hence there is no justification to restrict the meaning to manufacturing activity only.

Full credit of tax paid under "Banking & Financial Services" are available even if partly used for non taxable manufacture.

Financing, being an activity relating to business, qualifies as input service.

In my view, the department's view is not legal and proper.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

CA.K.RAMAKRISHNA. PRABHU

CA Aakarsh Jain

Venkateshwaran Ekambaram

Credible HRM

Jayanti Visani

Subscribe Now

can we claim service tax paid to bank for loc ?

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

CA Final

Article Assistant

Associate CA