Input Service Tax

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Balaji (Querist)

26 December 2008 My question on service Tax Payment:
I'm using credit card and get loan of Rs.78000 aginst my repayment track. Now Banker collect service tax Rs.200/- on monthly with EMI (48months).
As I'm an individual, If pay service tax What is the benefit of tax paying.?
If there is no benefit of paying such taxes then what is solution.
Ex : if companies paying service tax means they can get input credit.

What is the solutions.I'm loosing Rs.2400/-PA..
Pls guide me in this issue....Thanks.
Balaji
9841060116

Jitender

Jitender (Expert)

26 December 2008 unfortunately , u can't avail any cenvat credit as the same is not an input service for you.

Balaji

Balaji (Querist)

29 December 2008 Ofcourse...I Accept your answer..
But Why should I Pay Service tax.
We are paying Taxe on our Income as per slab... Then Why this Service Tax.
I need proper Soulution.....Thanks.

annapurna

annapurna (Expert)

08 January 2009 Service tax is levied on the service rendered and the service receiver has to pay the service tax as they receive the services. Basically the income tax is on the income earned and it is governed by seperate Act as Income tax Act. The service tax is governed by Finance Act. We purchase so many goods for our own consumption and we pay VAT on that. Ultimately the indirect tax whether service tax or VAT will be collected from the final consumer

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