Input service tax 100% dont take

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

06 August 2011 service dept audit team objected for 100% input credit on payment of bills from 2008 onwards.

my firm is car show room and work shop

in work shop
FOR EXAMPLE:
spares sale : 1200/-
consumables sale: 200/-
engine sale: 250/-
LABOUR: 2500/-
Total Input value : 1500/-

we received advise from service tax dept by oral

labour charges + spares sale: Total : 3700/-

labour charges/total value*100

2500/3700*100: 67.56 nearly 68 %

total input value : 1500*68%:Rs: 1020/-

thanking you sir,

b.nagendra vara prasad

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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13 August 2011 since your sales involves other sales like sale of materials also, then you can take credit based on proportionate amount of input credit only

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