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Input credit of service tax

This query is : Resolved 

25 November 2013 Assume

Atul(Registered under service tax prior to 2013) avails the professional service of Sumeet(Registered under service tax in NOvember 2013)

Sumeet will comply under VCES Scheme for service tax that was payable from 2011 on his receipts.

Amount paid by Atul to Sumeet from April 2013 to October 2013: Rs 50 Lakhs.

Can Atul claim input service tax on 50Lakhs paid to Sumeet(assuming professional fees= Rs 44.50 Lakhs and balance as service tax input) since Sumeet is now registered under service tax.

26 November 2013 In case summet has charged service tax on invoice separately from April 13 to Sept 13 period then Atul can claim the credit even if Sumeet has not deposited the amount to government.

There are many case laws which support the above case law.


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