Credit of service tax paid

Save Share

This query is : Open

Muhammed Hussain (Querist)

22 March 2013 I want to get a clarification on a transaction by a logistics company, kindly help me.

Situation: The company is paying service tax to various service provider (Shipping and road transport) for their service.
The company collect the entire amount including service tax paid to the above parties from the customer by showing the gross amount in its bill.
Now my question is whether this company can take credit of amount paid to those srvice provider?

Thank You,

CA Parul Saxena

CA Parul Saxena (Expert)

22 March 2013 Ofcourse company can take credit of service tax paid to service provider. As logistic co.itself in a position of providing service. For providing service it is taking services from other shipping and road transport companies....

Muhammed Hussain

Muhammed Hussain (Querist)

03 April 2013 Kindly clarify me.. the service tax amount paid by the logistics company towards department is fully collected from its customer by rising a dbit note. if this is the case, my company can claim the credit of the service tax paid by the company.

Thank you

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