Service tax

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Ankur Gupta (Querist)

04 October 2011 A manufacturing unit have a factory at Fatehpur and a registered office at kanpur.

Weather the co. can avail credit of service tax in following condition:

1) Service provided at factory but bill raised in favour of kanpur address.

2)Service tax charged by the bank on processing fees.

3)weather credit of service tax can be availed on telephone bills which are in the name of company at kanpur address.

4)Co. is also registered as service provider as business ass. services (BAS).

5)if company wants to avail credit of service related to previous year wt accounting treatment, explain? weather any time limit applied?

U S Sharma

U S Sharma (Expert)

04 October 2011 1) a centralized registration may help you to consolidate the both.
2) if processing is related to part of taxable output service then yes.
4)

5) not possible, after finalization of balance sheet, however if provisions are made in final account for accumulated input credit, and same is informed to R/O of service tax then possible., otherwise the service tax paid has been claimed as expenses in P/L account and further credit would lead "unjust enrichment"

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Ankur Gupta

Ankur Gupta (Querist)

04 October 2011 if we treated service tax as an income in the next f.y. will the answer differ?

U S Sharma

U S Sharma (Expert)

04 October 2011 once the service tax is treated as expense in the year of payment of services, how it would be treated as income in next year?

get in touch with your CA, he can guide you in this regard, if he has any provision for the same/

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