Input service tax set off against output service tax

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Ajaykumar Chaudhary (Querist)
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31 January 2012 Dear all experts, if we charge service tax on output services & service tax charged on input services also on same services & other services then total input service tax can get as set off against output service tax? If yes then can get full set off or some decided percentage. If no (please make me understand)

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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01 February 2012 No. if you have direct input services related to output can be adjusted, in case you have more than one type of services, we need to set off related input services only except the following category of services

(i) Services used in relation to setting up, modernization,
renovation or repairs of a factory, premises of service
provider or an office relating to such factory or premises
(ii) Advertisement or Sales Promotion
(iii) Market Research
(iv) Storage up to the place of removal
(v) Procurement of inputs
(vi) Activities relating to business, such as accounting,
auditing, financing, recruitment and quality control coaching and training, compute networking, credit rating,
shares registry and security
(vii) Inward transportation of inputs or capital goods and their
outward transportation up to place of removal.

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Ajaykumar Chaudhary

Ajaykumar Chaudhary (Querist)
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02 February 2012 Dear Sir, I couldn't understand your reply properly, kindly explain me as my question.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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03 February 2012 In simple word. you cannot take credit and adjust the credit inter services, only the above services input can be adjusted for all services