Kkc classification and related query

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

06 June 2016 GM.

Dear Sir,

I am working with manufacturing concern. It is paying KKC mainly on reverse charge. And paying KKC as output service provider as renting of immovable property. Now, I am having confusion on whether we should expense of KKC paid on GTA and other on reverse charge or classify as an asset?

In case of renting of immovable property , in spite there is no direct co usage of GTA service, can we claim credit for the payment of KKC?

In a case, we classify KKC as expense as of now, and in future if with notification/amendment credit set off of KKC against other service tax, will we able to claim credit based on invoice/bills/challans as the document proof of payment?

Please give your valuable comments please.

Thanks .

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

06 June 2016 Expense the KKC paid on GTA as GTA service not used for renting of [property. Set off on KKC can be claimed on further amendment based on invoice.

Querist : Anonymous

Querist : Anonymous (Querist)

09 June 2016 Is there any direct co relation of utilisation of credit and usage of input service in direct output service is required??!
I think not, and If GTA fall in Input credit definition , it can be utilised as credit against output service of KKC.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

09 June 2016 Usage of input service in direct output service is required for claiming cenvat credit.

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