input credit
This query is : Resolved
23 December 2009
Dear All,
Kindly throw some light on the below issue.
A P.ltd has approached B advertising P. ltd for advertisement. B advertising P. Ltd has approached TV channel for advertising on behalf of A P. Ltd.
The TV channel raised bill for Rs. 100+ Service tax 10 (approx.) to B advertising P. Ltd.
B advertising P. Ltd added its profit margin and raised a bill for Rs. 120 + Service tax 12 (excluding education cess) to A P. Ltd.
How much input credit can A P. Ltd claim?
Can A P. Ltd claim Rs. 10 input credit?
Please reply ASAP.
Kindly throw some light on the below issue.
A P.ltd has approached B advertising P. ltd for advertisement. B advertising P. Ltd has approached TV channel for advertising on behalf of A P. Ltd.
The TV channel raised bill for Rs. 100+ Service tax 10 (approx.) to B advertising P. Ltd.
B advertising P. Ltd added its profit margin and raised a bill for Rs. 120 + Service tax 12 (excluding education cess) to A P. Ltd.
How much input credit can A P. Ltd claim?
Can A P. Ltd claim Rs. 10 input credit?
Please reply ASAP.
23 December 2009
Rs. 12
23 December 2009
Assuming that A Ltd has entered with B Ltd into composite contract of preparation and arranging display the advertisement.
Here the service provided by TV channel is covered under the SALE OF SPACE OR TIME FOR ADVERTISEMENT, and accordingly liable to pay service tax (Rs.10/-) on Rs. 100/- recovered from B Ltd.
Since B Ltd is liable to service tax for ADVERTISEMENT AGENCY SERVICE. As the B Ltd has used TV Channel services for providing advertisement service to A Ltd. In turn B Ltd shall be entitled to take credit of Rs. 10/- as input service.
Now B Ltd is billing for Rs. 120/- and charging service tax for Rs. 12/- to A Ltd.
Accordingly A Ltd shall be entitled for credit for Rs. 12/-.
For further query, feel free to write sanjayinfbd@yahoo.com (M-09350048731) or visit, HNO. 2489/8,Faridabad(Haryana)
Here the service provided by TV channel is covered under the SALE OF SPACE OR TIME FOR ADVERTISEMENT, and accordingly liable to pay service tax (Rs.10/-) on Rs. 100/- recovered from B Ltd.
Since B Ltd is liable to service tax for ADVERTISEMENT AGENCY SERVICE. As the B Ltd has used TV Channel services for providing advertisement service to A Ltd. In turn B Ltd shall be entitled to take credit of Rs. 10/- as input service.
Now B Ltd is billing for Rs. 120/- and charging service tax for Rs. 12/- to A Ltd.
Accordingly A Ltd shall be entitled for credit for Rs. 12/-.
For further query, feel free to write sanjayinfbd@yahoo.com (M-09350048731) or visit, HNO. 2489/8,Faridabad(Haryana)
23 December 2009
agree with Rs.12
23 December 2009
agree
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- House Property Reporting in ITR
- Internship/Academic shown in Salary Pay Slip of a Doctor
- TDS Claim year
- Refund of 20%pre-deposit paid for stay application
- TDS Challan Code
- Nomination of Bank for refund in itr 2
- Rent lease agreement
- Relief u/s Section 89
- REGARDING SECTION 44AE
- ASISSE return under the provisions of the Collection of Statistics Act, 2008 (7 of 2009)
- CG after sale of flat
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
