Input of Imported Service

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This query is : Resolved

Aakhri Pasta (Querist)

12 March 2009 Since we have to pay service tax on import of service, can we avail the credit of the same while paying service tax?

Manmohan ACA, CS

Manmohan ACA, CS (Expert)

13 March 2009

Aakhri Pasta

Aakhri Pasta (Querist)

13 March 2009 But as per Taxation of Services (Provided from Outside India and Received in India) Rules, 2006, the taxable services provided from outside India and received in India shall not be treated as output services for the purpose of availing credit of duty of excise paid on any input or service tax paid on any input services under CENVAT Credit Rules, 2004. (Rule 5)

Since the same cannot be treated as output service, how can we claim the input of the same.

Aakhri Pasta

Aakhri Pasta (Querist)

13 March 2009 Please clarify on the above matter.

Dayal

Dayal (Expert)

13 March 2009 Under reverse charge you have to pay first. Cenvat cannot be utilised for payment of import services service tax.

However once paid you can take the credit and the same can be utilised for domestic output services on which service tax is payable

I am not qooting the rules as already stated

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